[GNC] Mutual Fund Class Conversion

[Geoff]

Fear not Jack, you are nearly there!

The magic number we are looking for (your Cost Base) is:
(a) what you paid for the Initial Purchase
(b) the cash equivalent value of your two Reinvests

I think you know these numbers because you have shown them as "$xxxx", 
and we don't need to know them here.

"DRP" = Dividend Reinvestment Plan.

Ignore the discrepancy in the column headings - for DFMGX I used the 
menu option View / Transaction Journal; for DFMLX I used (the default) 
View / Auto-Split Ledger.

Sorry again for the confusion.

Good night.

Geoff
=====


On 16/02/2022 2:48 pm, Jack Frillman wrote:
> Now I'm really confused.
> No brokerage fees. I pay mine on a quarterly basis and it's an IRA 
> account so no taxes yet.
> I don't know what a DRP is so the answer is no to that one.
> 
> First thing is I don't have split transactions and the columns in my 
> register do not match what you have.
> My columns are: Date  Num  Description  Transfer  R  Shares  Price Buy 
> Sell  Balance
> I have no idea where your "Tot Debt"  and  "Tot Credit" columns came 
> from and I don't have them.
> 
> I have only 3 transactions:
> 
> Description            Transfer                       Shares 
> Buy             Balance
> Initial Purchase      Invest:IRA                  398.75 $xxxx 398.75
> Reinvest                 IRA:Dividends               6.148 
> $xxxx          404.989
> Reinvest                 IRA:Dividends               5.311 $xxxx    410.209
> 
> 
> I will take a closer look at your example in the morning.
> 
> 
> 
> On 2/15/22 9:59 PM, Geoff wrote:
>> Sorry Jack, that is just the total acquisition cost of your 410.209 
>> units in DFMGX:
>>  - How much did you pay for them?
>>  - Were there any brokerage fees or taxes?
>>  - Did you receive any units in lieu of income (DRP)?
>>
>> Add that all up and enter it as the Credit when you reduce DFMGX, and 
>> again as the Debit when you increase DFMLX.
>>
>> See attached screenshot for an imaginary example where you purchased 
>> two lots (300 and 100) and received a further 10.209 via DRP. (Dates 
>> are in DD/MM/YYYY format).
>>
>> Hope this helps.
>>
>> Geoff
>> =====
>>
>> On 16/02/2022 1:20 pm, Jack Frillman wrote:
>>> That make sense except for the "The value you attribute to this 
>>> transaction should be the total cost base of DFMGX, so that DFMLX 
>>> inherits the same cost base."
>>> How do I do that?
>>> When I reduce DFMGX by 410.20900 shares to 0 transfer them to the new 
>>> DFMLX with the transaction drop-down selection thingy?
>>>    OR
>>> Do I just reduce DFMGX by 410.20900 shares to 0 by dumping them into 
>>> a trash account then enter a new balance of 410.08500 in the DFMLX 
>>> account?
>>>
>>>
>>>
>>> On 2/15/22 8:14 PM, Geoff wrote:
>>>> Hi Jack
>>>>
>>>> ***Assuming there is no cash component, and this is not a capital 
>>>> gains taxable event, I think that you need to:
>>>>
>>>> (a) Create a new Security and a new Account for DFMLX.
>>>> (b) In a single transaction, reduce the balance of DFMGX to zero, 
>>>> and increase the balance of DFMLX to 410.085.  The value you 
>>>> attribute to this transaction should be the total cost base of 
>>>> DFMGX, so that DFMLX inherits the same cost base.
>>>>
>>>> ***I am not an accountant.
>>>>
>>>>
>>>> Regards
>>>>
>>>> Geoff
>>>> =====
>>>>
>>>> On 16/02/2022 11:18 am, Jack Frillman via gnucash-user wrote:
>>>>>
>>>>> How should I handle a "Mutual Fund Share Class Conversion".
>>>>>
>>>>> In my case I had the following transaction, see summary below, show 
>>>>> up in my broker account:
>>>>>
>>>>> (410.20900)  shares of DF DENT MID CAP GROWTH FUND INSTL CL N/L 
>>>>> (DFMGX)
>>>>>   converting to
>>>>> 410.08500  shares of  DF DENT MID CAP GROWTH FUND INSTL PLUS CL N/L 
>>>>> (DFMLX)
>>>>>
>>>>> No price or $ amount is associated with this transaction.
>>>>> The only things that changed are 1) ticker symbol, 2) name of 
>>>>> Mutual Fund, 3) number of shares.
>>>>>
>>>>> Not sure what to do.
>>>>>
>>>>> Any suggestion will be greatly appreciated.
>>>>> Thanks.
>>>>> Jack
>>>>>
>>>
>