How to enter ETF transactions into Q
in [Quicken]
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From: Art Matz on 3 Mar 2010 18:55 I have a Gold ETF. During the year, no transactions for this ETF were on my brokerage statements. But on my 1099-B detail for this ETF (one month example): Date Sold = 5/31/09, Qty = 0, Proceeds = 30.87, Cost Basis = 29.33, Gain/Loss = 1.54 It also section called Proceeds Investment Expenses - Detail Information Date = 5/31/09, Amount = 30.87- I was told I could claim the 30.87 as investment expense. Also, the cost basis for this position was reduced by the 29.33. How do I enter a transaction in Q which will reduce my cost basis by 29.33, show with a capital gain of 1.54 for 0 shares and investment expense of 30.87 without affecting the number of shares and money in my account?
From: Targ on 4 Mar 2010 01:35 In alt.comp.software.financial.quicken, Art Matz wrote: >I have a Gold ETF. During the year, no transactions for this ETF were on my >brokerage statements. > >But on my 1099-B detail for this ETF (one month example): > >Date Sold = 5/31/09, Qty = 0, Proceeds = 30.87, Cost Basis = 29.33, >Gain/Loss = 1.54 > >It also section called Proceeds Investment Expenses - Detail Information > >Date = 5/31/09, Amount = 30.87- > > > I was told I could claim the 30.87 as investment expense. Also, the cost >basis for this position was reduced by the 29.33. Not in the US for most people... OK, you could claim it, but it would be subject to a threshold that makes it have no effect for most people. http://www.schwab.com/public/schwab/research_strategies/market_insight/financial_goals/tax/investment_expenses_whats_tax_deductible.html > >How do I enter a transaction in Q which will reduce my cost basis by 29.33, >show with a capital gain of 1.54 for 0 shares and investment expense of >30.87 >without affecting the number of shares and money in my account? That's messy. Enter a return of capital, plus a miscellaneous expense? No, that's not quite it. OK. Maybe do an appropriate split to give you a little more than you have now, and sell the extra for 30.87... that's in addition to the miscellaneous expense transaction. I would be tempted to Sell that sucker, to avoid annual aggravation.
From: Art Matz on 4 Mar 2010 12:59 I will probably sell this position. If I do buy shares of this again, only in an IRA where I wouldn't have to worry about these consequences. From what I've looked up, they sell gold in the fund each month to cover expenses. They report the sale of gold as proceeds which you don't actually get since it's used to pay expenses. I have to pay tax on the gains. My cost basis goes down by my cost basis in the gold they sold. But, unless I itemize (I usually take the standard deduction), I'm penalized by my cost basis going down with no offsetting benefit. "Targ" <no(a)mail.invalid> wrote in message news:lfkuo51ik2em2s68g2msol8khib05e4e4v(a)4ax.com... > In alt.comp.software.financial.quicken, Art Matz wrote: > >>I have a Gold ETF. During the year, no transactions for this ETF were on >>my >>brokerage statements. >> >>But on my 1099-B detail for this ETF (one month example): >> >>Date Sold = 5/31/09, Qty = 0, Proceeds = 30.87, Cost Basis = 29.33, >>Gain/Loss = 1.54 >> >>It also section called Proceeds Investment Expenses - Detail Information >> >>Date = 5/31/09, Amount = 30.87- >> >> >> I was told I could claim the 30.87 as investment expense. Also, the cost >>basis for this position was reduced by the 29.33. > > Not in the US for most people... OK, you could claim it, but it > would be subject to a threshold that makes it have no effect for > most people. > http://www.schwab.com/public/schwab/research_strategies/market_insight/financial_goals/tax/investment_expenses_whats_tax_deductible.html > > >> >>How do I enter a transaction in Q which will reduce my cost basis by >>29.33, >>show with a capital gain of 1.54 for 0 shares and investment expense of >>30.87 >>without affecting the number of shares and money in my account? > > That's messy. > Enter a return of capital, plus a miscellaneous expense? No, that's > not quite it. OK. Maybe do an appropriate split to give you a little > more than you have now, and sell the extra for 30.87... that's in > addition to the miscellaneous expense transaction. > > I would be tempted to Sell that sucker, to avoid annual aggravation. >
From: TomYoung on 4 Mar 2010 14:13 On Mar 4, 9:59 am, "Art Matz" <am...(a)invalid.com> wrote: > I will probably sell this position. If I do buy shares of this again, > only in an IRA where I wouldn't have to worry about these consequences. > > From what I've looked up, they sell gold in the fund each month to cover > expenses. > > They report the sale of gold as proceeds which you don't actually get since > it's used to pay expenses. > > I have to pay tax on the gains. My cost basis goes down by my cost basis in > the gold they sold. > > But, unless I itemize (I usually take the standard deduction), I'm penalized > by my cost basis going down with no offsetting benefit."Targ" <n...(a)mail.invalid> wrote in message > > news:lfkuo51ik2em2s68g2msol8khib05e4e4v(a)4ax.com... > > > In alt.comp.software.financial.quicken, Art Matz wrote: > > >>I have a Gold ETF. During the year, no transactions for this ETF were on > >>my > >>brokerage statements. > > >>But on my 1099-B detail for this ETF (one month example): > > >>Date Sold = 5/31/09, Qty = 0, Proceeds = 30.87, Cost Basis = 29.33, > >>Gain/Loss = 1.54 > > >>It also section called Proceeds Investment Expenses - Detail Information > > >>Date = 5/31/09, Amount = 30.87- > > >> I was told I could claim the 30.87 as investment expense. Also, the cost > >>basis for this position was reduced by the 29.33. > > > Not in the US for most people... OK, you could claim it, but it > > would be subject to a threshold that makes it have no effect for > > most people. > >http://www.schwab.com/public/schwab/research_strategies/market_insigh... > > >>How do I enter a transaction in Q which will reduce my cost basis by > >>29.33, > >>show with a capital gain of 1.54 for 0 shares and investment expense of > >>30.87 > >>without affecting the number of shares and money in my account? > > > That's messy. > > Enter a return of capital, plus a miscellaneous expense? No, that's > > not quite it. OK. Maybe do an appropriate split to give you a little > > more than you have now, and sell the extra for 30.87... that's in > > addition to the miscellaneous expense transaction. > > > I would be tempted to Sell that sucker, to avoid annual aggravation. Yes, there's really no good way to deal with this unless you go back into Quicken and convert your shares into ounces of gold, which would have other ramifications when it came to daily pricing. In the SPDR write-up (http://www.spdrgoldshares.com/media/GLD/file/ SPDR-Gold-Trust-Tax-Information-2009.pdf) they are somewhat inconsistent in their approach to the calculations, but the "Proceeds" from sales *should* be the same as the "Investment Expense" so that would leave you with no cash effect, just a slightly smaller number of ounces of gold. Maybe do a "stock split" to convert to ounces, sell your ounces, then do a "reverse split" to come back to your original number of shares? I haven't received any 1099 info on this but I've read that other folks who own GLD have received 1099's with each month's sale listed out as a transaction, meaning each one of those really should be entered in your tax return. What fun! Yeah, these sort of things really should be inside an IRA. Tom Young
From: Art Matz on 4 Mar 2010 15:16
Yes, my 1099 has monthly amounts since I bought it. "TomYoung" <sombodee(a)gmail.com> wrote in message news:d8c3d4bb-2921-43f5-bbc3-68ab2990c625(a)s25g2000prd.googlegroups.com... On Mar 4, 9:59 am, "Art Matz" <am...(a)invalid.com> wrote: > I will probably sell this position. If I do buy shares of this again, > only in an IRA where I wouldn't have to worry about these consequences. > > From what I've looked up, they sell gold in the fund each month to cover > expenses. > > They report the sale of gold as proceeds which you don't actually get > since > it's used to pay expenses. > > I have to pay tax on the gains. My cost basis goes down by my cost basis > in > the gold they sold. > > But, unless I itemize (I usually take the standard deduction), I'm > penalized > by my cost basis going down with no offsetting benefit."Targ" > <n...(a)mail.invalid> wrote in message > > news:lfkuo51ik2em2s68g2msol8khib05e4e4v(a)4ax.com... > > > In alt.comp.software.financial.quicken, Art Matz wrote: > > >>I have a Gold ETF. During the year, no transactions for this ETF were on > >>my > >>brokerage statements. > > >>But on my 1099-B detail for this ETF (one month example): > > >>Date Sold = 5/31/09, Qty = 0, Proceeds = 30.87, Cost Basis = 29.33, > >>Gain/Loss = 1.54 > > >>It also section called Proceeds Investment Expenses - Detail Information > > >>Date = 5/31/09, Amount = 30.87- > > >> I was told I could claim the 30.87 as investment expense. Also, the > >> cost > >>basis for this position was reduced by the 29.33. > > > Not in the US for most people... OK, you could claim it, but it > > would be subject to a threshold that makes it have no effect for > > most people. > >http://www.schwab.com/public/schwab/research_strategies/market_insigh... > > >>How do I enter a transaction in Q which will reduce my cost basis by > >>29.33, > >>show with a capital gain of 1.54 for 0 shares and investment expense of > >>30.87 > >>without affecting the number of shares and money in my account? > > > That's messy. > > Enter a return of capital, plus a miscellaneous expense? No, that's > > not quite it. OK. Maybe do an appropriate split to give you a little > > more than you have now, and sell the extra for 30.87... that's in > > addition to the miscellaneous expense transaction. > > > I would be tempted to Sell that sucker, to avoid annual aggravation. Yes, there's really no good way to deal with this unless you go back into Quicken and convert your shares into ounces of gold, which would have other ramifications when it came to daily pricing. In the SPDR write-up (http://www.spdrgoldshares.com/media/GLD/file/ SPDR-Gold-Trust-Tax-Information-2009.pdf) they are somewhat inconsistent in their approach to the calculations, but the "Proceeds" from sales *should* be the same as the "Investment Expense" so that would leave you with no cash effect, just a slightly smaller number of ounces of gold. Maybe do a "stock split" to convert to ounces, sell your ounces, then do a "reverse split" to come back to your original number of shares? I haven't received any 1099 info on this but I've read that other folks who own GLD have received 1099's with each month's sale listed out as a transaction, meaning each one of those really should be entered in your tax return. What fun! Yeah, these sort of things really should be inside an IRA. Tom Young |