Re: Specific tax lot vs FIFO tax lot

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Posted by jim on May 29, 2007 at 09:53:45:

In Reply to: Re: Specific tax lot vs FIFO tax lot posted by Mark on May 27, 2007 at 20:33:25:

: : Have a stock that pays a return of capital, ROC, which was taken in cash. The theory says that ROC should reduce my cost in both a FIFO and specific tax lot basis. If I sell shares, both of the 'Report Cap Gains - Specific Lot' and 'Report Cap Gains - FIFO' reflect correctly the ROC in the cost of the sold shares. However another custom report containing 'Tax Basic, Specific Lot' and 'Tax Basis, FIFO (end)' of the remaining shares do not handle the ROC correctly. The 'Tax Basic, FIFO (end)' is correct where as the 'Specific Lot' report misses the ROC. What am I doing wrong?

: : Also in the same vain, I note that the definition of 'Purchase OOP (current)' does not include 'distributions'. Why is ROC considered a distribution? Isn't it a very special distribution that should be reflected in a change of the original OOP cost?

: : Thanks.

: Hi Jim,

: Yes, ROC distributions lower your tax cost basis. ROC and "Account Fee" distributions are unique types of distributions in that these lower/raise your tax cost basis. Other distribution types do not affect your cost basis (unless they were reinvested).

: I'm not sure what is wrong. Maybe you can send me that investment file, along with how to reproduce the problem. Please also include the values you are seeing, and what you are expecting.

: Purchases OOP (current) is only one component of your total out of pocket cost. If you want to see the number that includes distributions received, see the "Out of pocket basis (current)". This figure includes both purchases and received distributions.

: Thanks,
: Mark
: --
: Fund Manager - Portfolio Management Software

Wow working on a Sunday during a long holiday weekend! I am impressed!

I assume you would like the .dat file for the stock in question? How do I send it to you so that the entire message board does not see it.

Thanks, Jim

Replies:

• Re: Specific tax lot vs FIFO tax lot Mark 10:18:27 05/29/07 (0)