Capital gains

Eric Angell eric at
Tue Jan 24 03:36:48 EST 2006

So I've been reading this list long enough to see "capital gains
on stocks aren't handled well; add a split or wait for 2.0"
several times.  I suppose we're close enough to actually seeing
2.0 that maybe I should really just wait, but my curiosity has
finally gotten the best of me.  The question of cap gains appears
in the FAQ on the wiki, but the answer is blank, so I searched
the archives to make sure I remembered things correctly.  I found
a few messages but none of them were all that clear about how to
actually handle this.  I can't see how to add an adjusting split
to account for the gain, so perhaps someone can help me out...or
just tell me to wait for G2.

I'll give a concrete example.  Take my old 401k: many deposits
(purchases of a mutual fund) made over a couple years left me
with a cost basis of $8899.70 and $3.98 in reinvested dividends
for a total of 361.5071 shares.  This was sold at $26.51 per
share for $9583.55: $679.87 in capital gains as reported by the
fiduciary (which balances out if you add in the $3.98).  But
where to account for the $679.87?  I can't just add an extra
split to the selling transaction, because this would be

Account receiving rollover             $9583.55
Stock account    -361.5071    $26.51              $9583.55
Income:Cap gains                                  $679.87

But I could add an additional split to the account, priced at
Stock account     0           $0       $679.87

That would make the transaction balance, but it leaves me feeling
dirty.  Is the right answer "just wait for G2", or is it really
possible to do this cleanly by hand in the 1.8 series?

Thanks for any insights.


To announce that there must be no criticism of the president or
that we are to stand by the president right or wrong is not only
unpatriotic and servile, it is morally treasonable to the American
        --Theodore Roosevelt

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