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

[Jean-David Beyer]

On 05/03/2016 05:17 PM, Wm wrote:
> In article <5727EBD2.8000104 at verizon.net>
> Jean-David Beyer <jeandavid8 at verizon.net> wrote:
>>
>> On 04/30/2016 07:11 PM, Wm wrote:
>>>>> 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."
>>> I may be misunderstanding but I'd expect the price of the new
>>> holding to be the same (allowing for costs) as the selling price of
>>> the old holding.
>>>
>>> To clarify if you (on the same day or very close to the same day)
>>> Sell 10 Widget PLC @ 100
>>> and
>>> Buy 10 Widget PLC @ 100
>>>
>>> how is the cost basis wrong?
>>>
>>> An example might help, no need to use real money amounts, etc,
>>> we're not interested in that.
>>
>> Here is the example:
>>
>> In 1996 I bought three shares of XXX for $32,000 each in an IRA (tax
>> deferred account.
>>
>> When a Roth IRA became available, I had the broker roll over those three
>> shares into the Roth IRA, and I paid the required capital gains tax. Now
>> a Roth-IRA is not taxible, so it does not really matter much what
>> GnuCash thought the cost basis then was.
>>
>> Then a couple of years ago, I took those shares out of the Roth IRA and
>> put them in the safe deposit box. Let us say they were $200,000 each on
>> that day.
>>
>> I could not make GnuCash do a transfer from my Roth IRA to my safe
>> deposit box (made like just another brokerage account). So I told
>> Gnucash that I sold the shares at $200,000 and bought 3 shares at
>> $200,000 for the safe deposit box account. And everything looks fine
>> unless I run a balance sheet that says the cost basis of those shares in
>> the safe deposit box account is $32,000 each, when it should be
>> $200,000. Unless it thinks this was a wash sale or something.
>>>
>>> I think the crux at the moment is this
>>> ===
>>> Now if I do a balance sheet, it uses the original cost basis of
>>> these shares, but it is way way off.
>>> ===
>>> if it is "way way off" it is because you've told it so.  It isn't
>>> obvious to me what you've used as the transfer value. Have you
>>> perhaps used the original (long ago) purchase values?
>>>
>>
>> Sorry that it was not obvious. I surely did use the right transfer value
>> in the new account. If I look at that account, it gives the correct
>> purchase price. But the balance sheet does not.
> 
> No, no.  Perhaps it should be me (or us) saying sorry, though I 
> also suspect something may have been lost in translation.
> 
> If you look at Tools / Security Editor do the shares appear more 
> than once or once only?

Once only.
> 
> If you look at Tools / Price Editor do the shares have accurate
> 
> Date
> Price
> 
> entries on or around the dates you made significant transfers?

No price at all.
> 
> These should be close to market values aat the time for most 
> purposes rather than transfer values which could be weird for many 
> reasons.
> 
> Having checked that, open up a balance sheet (try both and see

both what?

> which suits your example better) and look at what you have for
> Price Source

Nothing.

> and (obviously)
> Date (it is a balance sheet so must have that)

Balance Sheet 2016-12-31

> and tick (or check or whatever it is in your home language)
> the boxes that Show Currencies and Show Exchange Rates and so on 
> and look at what is shown.

Berkshire-Hathaway Class A	   	
3 BRK.A	$97,800.00
> 
> Apart from including stuff in the report
> the right Price Source in conjunction with having prices close to 
> the times of significant transactions may be the clue to your 
> conundrum.
> 
> Also: generally you want your price db to reflect the outside world 
> and your transactions to reflect the actual values as pereived by 
> you.  This is a generalisation, I am pointing out that if you or 
> someone else makes a transfer of 10 stock @ 20 when the market 
> price was 10 for tax reasons, you don't normally want those prices 
> in your price db as they aren't what the world at large knew and so 
> aren't useful for valuation.
> 
> Let us know how this works out.  If I am right about the price 
> source and wrong values in the price db you will get more help 
> easily as the main problem will be solved.
> 


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