[GNC] Mutual Fund Class Conversion

Jack Frillman jcf_m_lists at me.com
Wed Feb 16 19:28:37 EST 2022


I got it figured out. Not sure how it works but things look fine so I happy.

Thanks for the help.
Jack

On 2/15/22 11:35 PM, Geoff wrote:
> 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
>>>>>>
>>>>
>>

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