Cost basis for security that was inherited
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Grandma B
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I inherited a security June 2017 that I downloaded directly into Quicken from Vanguard. However when I sold it Nov 2019 the cost basis in Quicken is substantially off compared to Vanguard. Vanguard showed I had almost $2500 more in gain than Quicken did. I traced the difference via Vanguard statements back to the my original ownership of the security. The security does use cost averaging which is appropriately checked in Quicken. The only transactions since ownership have been reinvesting the dividends. How do I adjust Quicken so it reflects the true cost basis even from day one of my ownership. Thanks....
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An additional note - I read --- The cost per share for inherited shares is generally the value of the shares on the date that the deceased died or on an alternative valuation date. When you receive the inherited shares, record the cost per share on that date. --- How do you record that and can that be changed now?0
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Sure, you can edit any transaction that is entered or downloaded from the institution. Vanguard does not know the inherited cost, only you can determine. Simply highlight the transaction in the register and select Edit. Change the cost to what you determine and let Quicken calculate the total price.
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The shares should have been recorded as Added in Quicken since you did not buy them but received them as an inheritance. In the Added transaction you would enter the value on the acquisition date which for inherited shares should be the value on the date of death. Presumably that is the also the value Vanguard used for the cost basis but you should check this and get them to correct it if necessary.
Different rules apply if you received the shares as a distribution from a trust rather than an inheritance.
Caveat: I am just a Quicken user, not a tax adviser. Consult with your tax adviser and/or the executor of the estate.QWin Premier subscription0
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