[GNC] Capital Gain Calculations on Split Stocks

[David T.]

Hi,

In the last couple of days, I have learned TONS about how to manage 
capital gains with assorted lots in the GnuCash realm. The financial 
institution I use has algorithms that adjust my accounts to minimize tax 
implications. This results in sales against specific lots within 
GnuCash, and I've been able to match sales with specific lots and 
achieve numbers in GnuCash which match the institution's calculations. 
All good!

However, I have one account with a single purchase, followed by a two 
for one split, followed by a partial sale. Using the lots in this case, 
however, yields wildly variant and incorrect results. In the attached 
image, you can see the full transaction history, along with the lots 
window indicating the assignment of the February sale to Lot 0 with a 
loss of $169.96.

This happens because 7*53.29 (the original share price) = $373.03, and 
203.07 - 373.03 = -169.96

If I choose to use Lot 2 for the match, the result is $203.07 gain 
(7*0=$0 cost). This also is wrong.

The correct calculation is: $203.07 - (7 * 53.29 / 2) = $16.55, which is 
what the institution is reporting. I am hesitant to adjust the gain 
value to match this amount, as I suspect that GnuCash will then report 
the account as out of balance. I have seen in the past that incorrect 
gains calculations can throw off the balance sheet, with painful 
remedies and memories. My questions here are:

1) Is there a way to have GnuCash properly track cost basis in an 
account with a stock split?

2) If I arbitrarily change the gains transaction, will subsequent 
balance sheet numbers be in balance?

3) What is the proper way to handle a stock split?

TIA,

David T.

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