How to report proper cost per share after non-taxable spinoff - AT&T spun off WBD on 4/8/22?
Q reduced the total cost of the lot, but the cost per share was not reduced, left as it was before the spinoff.
Best Answer
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Again, helpful
Below is a screen snip. Above the thin red line is a portion of a customized portfolio view that includes an Average Cost/share column. The view is grouped by: ACCOUNT. Below that line is a standard Holdings view. In both views I have clicked the + next to the security to expand the view to include the lot detail.
The lower Holdings view shows a $23.585/share Quote/Price. That is the transactional price used to acquire the now 260 shares (adjusted both shares and price based on the 20:1 stock split in July 2022). The upper portfolio view shows that same Quote/Price. That value on the 260 shares corresponds to a $6132.18 'purchase price which is accurate. But in 2014, Alphabet split off into two classes (Class A GOOGL and Class C GOOG). That reduced the basis of the GOOGL shares by way of a RtrnCap transaction to $3069.95 - the current basis shown in both views for the current holding.
The portfolio view with the Average Cost/Share column does show that average cost as 11.8075 = 3069.95 / 260. That value gets computed for the entire holding, not on a per lot basis.
So the 'answer' to your question is that the "Quote/Price" column at the lot level is the 'transactional price' (my term) applicable for those shares not adjusted for RtrnCap or similar changes. It is not intended to represent to cost basis per share. The portfolio view can present the average cost basis per share for the entire holding.
(GOOGL was simpler to grab than ATT in this case. I am sure the same applies there.)
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Since that's a number that's calculated by Quicken I'd expect that it should be correct. If it isn't then I'd first close Quicken and then reopen the program to see if that corrects the situation. The other thing that I might try is to do a {Ctrl}-z in each Account that holds the security to make Quicken recalculate the cost bases.
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What were the companies?
How did you apply or get the transactions into Quicken?
What transactions are in Quicken for this deal?
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AT&T spun off WBD on 4/8/22.
I don't remember whether the transactions were downloaded from Vanguard or I entered a non-taxable spinoff.
Transactions currently in Quicken:
RtrnCapX with amount equal to the proper reduction in cost of T and memo "Non taxable spin-off on 4/8/2022"
Added WBD at proper amount and number of shares.
There is also a separate Sold transaction for the fractional share of WBD.
I tried Cttrl-Z, no effect.
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That's all good. The RtrnCapX reference suggest you used a fairly current Quicken wizard to create the spinoff. I hear you saying the Add Shares of WBD shows the correct total cost for that holding and that the basis of the ATT holding is also now correct.
So where is it that you are seeing this cost per share (for ATT) that is not correct? Portfolio view, Holding View of account details, Security Details for ATT, other?
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Holdings view for the account shows correct total cost, but incorrect cost per share.
Security Detail View for ATT shows average cost per share correctly.
I don't know of any way to get cost per share in Portfolio View so I don't know what that would show.
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"I don't know of any way to get cost per share in Portfolio View so I don't know what that would show."
If you go to Portfolio View and Click Options > Customize current view then "Average Cost Per Share" is one of the options under "Available Columns."
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Again, helpful
Below is a screen snip. Above the thin red line is a portion of a customized portfolio view that includes an Average Cost/share column. The view is grouped by: ACCOUNT. Below that line is a standard Holdings view. In both views I have clicked the + next to the security to expand the view to include the lot detail.
The lower Holdings view shows a $23.585/share Quote/Price. That is the transactional price used to acquire the now 260 shares (adjusted both shares and price based on the 20:1 stock split in July 2022). The upper portfolio view shows that same Quote/Price. That value on the 260 shares corresponds to a $6132.18 'purchase price which is accurate. But in 2014, Alphabet split off into two classes (Class A GOOGL and Class C GOOG). That reduced the basis of the GOOGL shares by way of a RtrnCap transaction to $3069.95 - the current basis shown in both views for the current holding.
The portfolio view with the Average Cost/Share column does show that average cost as 11.8075 = 3069.95 / 260. That value gets computed for the entire holding, not on a per lot basis.
So the 'answer' to your question is that the "Quote/Price" column at the lot level is the 'transactional price' (my term) applicable for those shares not adjusted for RtrnCap or similar changes. It is not intended to represent to cost basis per share. The portfolio view can present the average cost basis per share for the entire holding.
(GOOGL was simpler to grab than ATT in this case. I am sure the same applies there.)
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Thanks for the explanation and illustration (and to Tom for pointing out how to get the average cost per share — I had looked at Cost instead of Average cost in the Available Columns list).
My results for portfolio view are similar to your illustration with two exceptions: my illustration shows the original cost per share by the lot instead of the blank you have. And the obvious, GOOGL has a huge gain instead of big loss for T.
I understand what you are saying and won't pursue this further, but I think Quicken is mistaken in giving the unadjusted amount. I am likely to want to know the cost per share by lot since I might well want to sell only part of the holding. Quicken does not give me the information to make that decision. I think it should. I see no reason to be concerned about the original cost per share when a spinoff has made the tax basis something else. I cannot think of any reason I would want to know the unadjusted cost per share. (I wonder what cost Quicken would use if I sold one lot.)
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And the obvious, GOOGL has a huge gain instead of big loss for T.
I thought of hiding that aspect, but decided doing so would be too much trouble. It has been a nice holding.
my illustration shows the original cost per share by the lot instead of the blank you have.
My 'blank' is in the Average Cost per share column which you also acknowledge missing. My Quote/Price column shows the transactional price, i.e. original cost, at the lot level. Surely you do not see the transactional cost in two different columns, do you?
(I wonder what cost Quicken would use if I sold one lot.)
It uses the correct adjusted price for that lot.
There is a Cap Gains Estimator under the Planning tab, but I have never found it very useful (or intuitive).
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You're right. I confused the columns. Not sure what an old cost is doing in the Price column, but better there than in the Cost column.
I still don't think Quicken should be reporting an irrelevant cost number in the Holdings.
Thanks for the help and explanation.
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