Question on average cost

Member ✭✭✭✭
This is a curiosity question, on the Investing tab, Security Detail View, there is an Edit button for editing security details. For mutual funds, you can have the "Average Cost" check box checked or not. But that box does not exist for a stock, just for mutual funds (that's the only security types I have). How come the difference? Thanks!

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Best Answer

  • Quicken Windows Subscription SuperUser ✭✭✭✭✭
    Answer ✓
    "I didn’t know was apparently for stocks you are not allowed to average cost?"
    Correct.
    "I guess it’s just first in first out?"
    No, other costing mechanisms are available but FIFO is the default if you don't specify a different method'

Answers

  • Quicken Windows Subscription SuperUser ✭✭✭✭✭
    For mutual funds the IRS lets you use average cost to simplify capital gains calculations.
    QWin Premier subscription
  • Member ✭✭✭✭
    Thanks @Jim_Harman I did know that, what I didn’t know was apparently for stocks you are not allowed to average cost? I guess it’s just first in first out? ( I just do what the report says when I receive it each year!)
  • Quicken Windows Subscription SuperUser ✭✭✭✭✭
    Answer ✓
    "I didn’t know was apparently for stocks you are not allowed to average cost?"
    Correct.
    "I guess it’s just first in first out?"
    No, other costing mechanisms are available but FIFO is the default if you don't specify a different method'

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