simple howto for selling stocks
Callum E Murdoch
cem22b at gmail.com
Tue May 13 15:43:45 EDT 2008
Hi Charles,
thanks for your patience,
I suppose the bottom line is then is i have to try and get my head
around this split method as per the tutorial (which at the moment is
like double dutch for me).
Simply put do i have an entry selling the funds with the proceeds going
into a capital gains account and then when i buy the new funds the money
comes back out of that account?
On Tue, 2008-05-13 at 12:28 -0700, Charles Day wrote:
> On Tue, May 13, 2008 at 11:42 AM, Charles Day <cedayiv at gmail.com>
> wrote:
> On Tue, May 13, 2008 at 10:34 AM, Callum E Murdoch
> <cem22b at gmail.com> wrote:
>
> Hi Charles,
> Sorry for delay in reply i'm in a remote location in
> Africa and comms
> have been down for days.
> Anyway I guess i'm still missing somthing here i dont
> see how my
> accounts wont balance since the original entry in
> gnucash i did manually
> using Equity:Opening balance shares. Whats the
> difference of entering
> the proceeds of the sale into my Bestinvest broker
> account and then the
> new funds being purchased out of this account using
> all the cash.
> i have done this
> Step 1 under fund A sold all units for 1000 which is
> entered as a
> transfer to Bestinvest account.
> Step 2 In bestInvest set up new sub account Fund C,
> which is purchased
> using the 1000 from the sale of Fund A
>
> Using this method is very straight forward am i
> missing somthing ?
>
>
> A correction to my reply: Assuming that the value of those units of
> Fund A was not 1000 on the day of your Equity:Opening Balance
> transaction, there is a capital gain (or loss) from the sale which
> constitutes income.
>
>
>
> Assuming that you bought those units of Fund A for less than
> 1000, then you have a capital gain from the sale, which
> constitutes income. The simple transfer you suggest in Step 1
> doesn't capture this and will throw your books out of balance.
> Quicken hid this complication from you.
>
> Please read sections 2.2 and 2.3 of this tutorial. The
> examples are in terms of foreign currency, but apply equally
> to stocks or investment funds:
> http://www.mathstat.dal.ca/~selinger/accounting/tutorial.html#1.
>
> Cheers,
> Charles
>
>
>
>
> regards
> Callum
>
>
> On Sat, 2008-05-10 at 22:48 -0700, Charles Day wrote:
> > On Sat, May 10, 2008 at 2:03 PM, Callum Murdoch
> <cem22b at gmail.com>
> > wrote:
> > Hi,
> > I guess i did'nt explain properly, I have an
> ISA with 4
> > seperate fund
> > holdings within it. I am transfering several
> of them to
> > different funds.
> > This is handled by the broker (Co-funds) by
> selling the ones i
> > want to get
> > rid of and buying the new funds i have
> chosen with the
> > proceeds. This all
> > under one account. These are also tax free
> investments.my
> > structure is as
> > follows
> > Bestinvest (broker account)
> > --Fund A
> > -- Fund B
> > -- Fund C
> >
> > selling B & C and buying D & E all under
> Bestinvest.
> >
> >
> >
> > I would do this as:
> > 1. Sell B using the method described in the
> documentation.
> > 2. Sell C using the method described in the
> documentation.
> > 3. Buy D using the method described in the
> documentation.
> > 4. Buy E using the method described in the
> documentation.
> >
> > Except for the need to manually account for the
> capital gains, this is
> > the same as you would do in Quicken. Your broker
> should provide you
> > with the basis and capital gains figures.
> >
> > Since you've said that the capital gains income is
> not taxable, I'd
> > recommend creating a specific income account for
> this, named something
> > like "Income:Tax-Free Capital Gains".
> >
> > -Charles
> >
> >
> >
> > On Sat, May 10, 2008 at 9:30 PM, Derek
> Atkins
> > <warlord at mit.edu> wrote:
> >
> > > Hi,
> > >
> > > Quoting corkscrew60 <cem22b at gmail.com>:
> > >
> > > I am a new user to gnucash i have swapped
> over from quicken.
> > On the whole i
> > >> like it better except for selling stock.
> I just cant get my
> > head round the
> > >> instructions given in the help file. Does
> anyone know of a
> > simple howto
> > >> giving a step by step on how to do this.
> > >> I have an investment account set up with
> a number of funds
> > within it. I
> > >> have
> > >> sold a complete subset and bought another
> all under the
> > same investment
> > >> account. The instructions in the help
> file mentioning
> > setting up a capital
> > >> gains account I dont see why i need this
> when the money
> > from the sale
> > >> satys
> > >> within the investment account to make the
> new purchase of
> > the different
> > >> funds
> > >>
> > >
> > > Are you buying the same funds/stocks from
> the other broker?
> > Or are
> > > you selling FundA and buying FundB? In
> the latter case then
> > yes,
> > > this IS a capital gain and you should
> account for it. The
> > basis of
> > > FundB will be the ending value of FundA,
> but you still have
> > a capital
> > > gain on FundA from when you purchased it
> to when you sold
> > it.
> > >
> > > See for example
> >
> http://cvs.gnucash.org/docs/guide/capgain_example1.html
> > >
> > > Please remember to CC this list on all
> your replies.
> > >> You can do this by using Reply-To-List or
> Reply-All.
> > >>
> > >
> > > -derek
> > >
> > > --
> > > Derek Atkins, SB '93 MIT EE, SM '95
> MIT Media
> > Laboratory
> > > Member, MIT Student Information
> Processing Board
> > (SIPB)
> > > URL: http://web.mit.edu/warlord/
> PP-ASEL-IA
> > N1NWH
> > > warlord at MIT.EDU
> PGP key
> > available
> > >
> > >
> >
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