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Cost Basis (ACB) Transfer exchange rate

Questions about updating prices or transactions in Fund Manager

Postby anevard » Thu Sep 01, 2016 6:26 am

I made a "transfer between" of 400 shares in one MF to 633 shares of another as the 1st fund was rolled into the 2nd. These funds are in USD. All went well and the cost base transferred at $58,024 USD. I did a transfer rather than a buy and sell to keep the original cost base and not to show a capital gain, as the trade is not a taxable transaction but a rollover from one fund into the other.

My portfolio base is CAD and the original fund was purchased when the dollar was nearly at par so that when I look at the cost base of the original fund it is $58,410 in CAD. The new fund shows the USD cost base correctly at $58,024 but when I show it in CAD it shows $65,855 CAD. I am not sure where it gets this number as if it was using the exchange rate around the time of the transfer, last month, the amount would be closer to $75,000 CAD.

I use the "Tax Basis AVG End" column to determine these amounts.

Also, the original fund had a series of buy and sell transaction from 2005 onward that eventually led to the average cost base amount.

Please explain how I can keep this transfer and cost base correct in both currencies.

Thank you,

Andrew
anevard
 
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Joined: Thu Sep 01, 2016 5:52 am

Postby Mark » Thu Sep 01, 2016 9:27 am

Hi Andrew,

When you use the Transfer Between wizard you will end up with multiple "Transfer In" transactions, one for each lot you originally purchased. If the new investment is in USD, when you show it adjusted into CAD, it will use the exchange rate on the "Tax Cost Basis: Date Acquired" date. If you look at the transfer in transactions in the Data Register, edit one of them, and you'll see the "Date Acquired" and "Value" in the "Tax Cost Basis" section. This is what is being used. Look at what you have for an exchange rate on these dates, and this is how it is getting converted into CAD. You can check your USD -> CAD exchange rate under "Options / Currency Settings...". If you're using an exchange rate investment, go find that investment, and look at the closing prices on these date acquired dates.
Thanks,
Mark
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Postby anevard » Thu Sep 01, 2016 12:56 pm

Hi Mark,

Thanks for the reply.

It only transferred one lot as that was all that were left of the shares. However, as the "Tax cost basis" was made up of several purchases and sales over the years at various exchange rates, the average "Tax cost basis" exchange rate does not match the "Tax cost basis - date acquired" exchange rate from the original purchase date. Is there a way for me to force the "Tax cost basis" exchange rate to match the average exchange rate of the "Tax cost basis - Value"?

Thanks,

Andrew
anevard
 
Posts: 3
Joined: Thu Sep 01, 2016 5:52 am

Postby Mark » Thu Sep 01, 2016 1:10 pm

Hi Andrew,

You can't specify an exchange rate specific to a transfer in. You can do this with a buy transaction, but not with a transfer in. You would have to modify your global exchange rate for this date to adjust how this transfer in is converted between currencies. The other option is to change it to a Buy transaction, and then you can record an exchange rate specific to this transaction.
Thanks,
Mark
Fund Manager - Portfolio Management Software
Mark
Site Admin
 
Posts: 11252
Joined: Thu Oct 25, 2007 2:24 pm
Location: Chandler, AZ

Postby anevard » Fri Sep 02, 2016 1:43 pm

Thanks Mark.

Effectively that is what I did. I set the "Tax Cost Basis: Date Acquired" to a date prior to my Portfolio inception date and entered the proper exchange rate in the Forex security at that date.

Would be good to eventually be able to add effective transfer exchange rates one day.

Andrew
anevard
 
Posts: 3
Joined: Thu Sep 01, 2016 5:52 am

Postby Mark » Fri Sep 02, 2016 1:45 pm

Hi Andrew,

Thanks for the feedback. Yes, that would be a good feature to add.
Thanks,
Mark
Fund Manager - Portfolio Management Software
Mark
Site Admin
 
Posts: 11252
Joined: Thu Oct 25, 2007 2:24 pm
Location: Chandler, AZ


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