Non taxable switch between funds

[mxhowes]

Back in August Vanguard switched my Investor Explorer shares to Admiral Shares. This is a non taxable move to a new fund and ticker symbol. I don't think I entered the information correctly. How do I do this sell/buy or transfer in/out or whatever so it shows no taxable gain?

[Mark]

Hi mxhowes,

There are a couple of ways you could enter this:

1) Record a split, with a ratio of <new shares> for <old shares>. Change the investment's name and symbol.

2) Use the "Transfer Between" wizard. This will record a Transfer Out in the original investment, and 1 Transfer In into the new Admiral shares investment for each open lot you had in the original investment.

With method #1 you will just have a single investment. With method #2 you will end up with 2 investments, although the first investment will have 0 shares after the date of the transfer. Either method is fine, it is pretty much a matter of preference. Method #2 is probably more informative, as you still have a record of what the old investment was, before the transfer date. Method #1 is probably simpler though.