How do I take delivery of stock certificates? (Not a brokerage question.)

[Jean-David Beyer]

On 04/25/2016 05:02 PM, Wm wrote:
> In article <5717D4DD.7020303 at verizon.net>
> Jean-David Beyer <jeandavid8 at verizon.net> wrote:
>>
>> I took delivery stock certificates in a company to keep in my safe
>> deposit box. I had no trouble doing this and the certificates are in the
>> box now.
>>
>> But I do not know how to manage this in GnuCash.
>>
>> I have Assets->Investments->Roth->Berkshire that had the certificates in
>> there.
>>
>> I made another account under Assets->Investments also named Berksnire
>> type Stock. This is a Stock type. I could not do a transfer. Program
>> says I cannot do that. So I pretended I sold it, put the money in the
>> Assets->Investments->Roth account as cash. I then went into
>> Assets->Investments->Berksnire and used the money to buy back the
>> shares. All this now seems to work, but is too clumsy.
>>
>> Now if I do a balance sheet, it uses the original cost basis of these
>> shares, but it is way way off.
>>
>> Those shares were originally purchased in my IRA at it thinks I bought
>> these shares at 20 years ago. When the Roth IRAs came out, I rolled
>> those shares into the Roth, paying tax of course. Now I took them out of
>> the Roth and put them in the safe deposit box. It seems to me it should
>> use the stock price when I took them out of the Roth and put them in the
>> safe deposit box.
>>
>> What should I do to fix GnuCash's opinion of the cost basis?
> 
> If you have just received the certificates rather than them being 
> stored elsewhere then there is no event as far s GnuCash is 
> concerned at all.

I have three brokerage accounts in GnuCash.

You say that moving stocks from one to another is not an event.
But actually, it is an event because when I moved this stock from a
regular IRA to the Roth IRA, I had to pay tax (a lot of tax) on the
value of those shares) and in a Roth IRA, no tax is paid for either the
dividends or the capital gains on those shares.

But if I take shares out of a Roth IRA, no tax is due, but any dividends
or capital gains on those shares subsequently are taxed, and the capital
gains are charged based on the price of the shares the day I took them
out of the Roth IRA. So I want GnuCash to keep track of the shares as of
that day.

I especially think this should be the case because the way I got GnuCash
to do this was to fake a sale of the shares and a purchase of new
shares. Thus, the cost basis should have been the price of the shares I
"bought."
> 
> If there has been a financial event or similar effected by the 
> transfer then a sale and re-purchase would seem appropriate and 
> what you put in as the values is up to you.
> 
> I am in the UK so this is just about whether there should be a 
> transaction or not and not about any tax implications, etc.
> 


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