Re: Adjusting cost basis
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Posted by Mark on June 02, 1999 at 08:06:45:
In Reply to: Adjusting cost basis posted by Wyatt on June 02, 1999 at 01:57:39:
: Hi Mark,
: Is there a way to adjust the cost basis of a stock to take into account adjustments made by the Co. declaring the dividend which they simply term "Additional Income"? It doesn't increase the number of shares, but only the basis. This seems to be the result of getting the shares at a discount to market and then having add'l income attributed to them representing that discount by the IRS for basis purposes. The only way seems to be is to enter it as a distribution (Account Fee) with a minus sign (ie. a negative negative distribution. It then shows up on the transaction report as a minus but in fact is added to the basis - which is correct. Just seems cumbersome. Sorry to be so long winded!
: Thanks,
: Wyatt Hi Wyatt,
There are 2 types of distributions you can
use to adjust the cost basis, either Account Fee
or Return of Capital. A positive value for
either of these type of distributions will
reduce your cost basis by the amount of the
distribution. (Normally, an Account Fee
type of distribution is suppose to be entered
as a negative number, because you are paying
it, instead of receiving it.) A negative value
for either of these distribution types will
increase your cost basis. These 2 distribution
types are special, in that they also adjust your
cost basis. Thanks,
Mark
--
Mark Beiley
Fund Manager for Windows 3.1x/95/98/NT
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