[GNC] Transferring mutual funds

Thu Jul 6 22:09:50 EDT 2023

If it's truly some kind of rollover, Gnucash does allow an exchange of
shares without a price. But I don't know how you'd keep the cost basis in
the new account.

On Wed, Jul 5, 2023 at 5:49 PM David Carlson <david.carlson.417 at gmail.com>
wrote:

> AC,
>
> Yes, to keep GnuCash happy you want to transfer the cost basis as well as
> the securities to the new brokerage account.  By entering the transactions
> as a sale at the same price that you purchased the the security and a new
> purchase at that same price, you are transferring the cost basis, Since
> that is not a real sale, there is no realized gain or loss to report to the
> taxman until you really do sell
>
> If you didn't transfer the cost, then GnuCash would think that the old
> account still had a cost for a now non-existent asset and the new account
> got the security free.  You may have to provide that same information to
> your broker or custodian if they didn't get it automatically.
>
>
>
> On Wed, Jul 5, 2023 at 3:31 PM AC <gnucash at acarver.net> wrote:
>
> > Answering two at once:
> >
> > Fred: No I did not work in split view. I was just working at the single
> > account level.
> >
> > David: Are you saying I need to instruct GnuCash to treat the transfer
> > as a sale even though there was no sale thus no realized gains/losses
> > and no actual change in the cost basis?
> >
> > On 2023-07-05 10:07, David Carlson wrote:
> > > AC,
> > >
> > > Fred implied, but didn't elaborate on the point that the shares in the
> > > original brokerage account had a cost basis that was incurred when they
> > > were purchased.  When you transfer them out, that is equivalent to a
> sale
> > > or closing transaction, and the cost basis should be adjusted
> > accordingly,
> > > even though there were no funds involved.  Of course, that exact cost
> > basis
> > > needs to be added to the receiving account as if the shares were
> > purchased
> > > at the original price.  This used to be described in great detail in
> one
> > of
> > > the help manuals, including the somewhat tricky procedure to enter
> > realized
> > > gains when an actual sale happens but I haven't checked lately to see
> if
> > > those parts are still there.  I know that if you do not do those things
> > and
> > > later run a trial balance or if you use the Investment Portfolio
> report,
> > > you will quickly see the error of your ways.
> > >
> > >
> > >
> > > On Wed, Jul 5, 2023 at 11:33 AM Fred Bone <Fred at mandfb.me.uk> wrote:
> > >
> > >> On 04 July 2023 at 16:29, AC said:
> > >>
> > >>> I recently moved some mutual funds from one brokerage to another. The
> > >>> process did not involve a sale, it was just a transfer of control
> from
> > >> the
> > >>> old to the new.
> > >>>
> > >>> In my current books I keep mutual funds listed as subaccount under
> each
> > >>> brokerage as such with their respective security/currency:
> > >>>
> > >>> Investments
> > >>> -Brokerage 1 (currency)
> > >>> --Fund A (security A)
> > >>> --Fund B (security B)
> > >>> -Brokerage 2 (currency)
> > >>> --Fund A (security A)
> > >>> --Fund C (security C)
> > >>> --Fund D (security D)
> > >>>
> > >>> I wanted to expand this to add the new brokerage and then perform a
> > >>> transfer of the funds from one to the other. Let's assume I moved the
> > >>> funds under Brokerage 1 to Brokerage 3. So the tree would look like
> the
> > >>> simplified version below (leaving out Brokerage 2 as it is
> unaffected):
> > >>>
> > >>> Investments
> > >>> -Brokerage 1 (currency)
> > >>> --Fund A (security A)
> > >>> --Fund B (security B)
> > >>> -Brokerage 3 (currency)
> > >>> --Fund A (security A)
> > >>> --Fund B (security B)
> > >>>
> > >>> The securities are the same because it's the same original mutual
> > funds,
> > >>> just moved to another brokerage. The tree would be left intact with
> the
> > >>> funds under Brokerage 1 being zeroed out and the funds under
> Brokerage
> > 3
> > >>> starting off with the incoming values.
> > >>>
> > >>> My natural tendency was to create a transfer directly within
> Brokerage
> > 1
> > >>> Fund A that moved all the shares over to Brokerage 3 Fund A but that
> > >>> didn't create the transaction I expected.
> > >>>
> > >>> By example, I transferred Fund A on July 1 which contained 10 shares
> at
> > >>> the price of the shares on that day. So in Brokerage 1 I entered -10
> > >>> shares with a total sell price of X as listed on the statement from
> > >>> Brokerage 1. The price is autocalculated and the balance correctly
> goes
> > >> to
> > >>> zero.
> > >>>
> > >>> Looking inside the Brokerage 3 Fund A account I only see a
> transaction
> > >>> that has an amount in the buy column but no shares and a balance of
> > zero.
> > >>> I can manually enter the same number of shares in that partially
> empty
> > >>> transaction but why was my thought about the transfer incorrect?
> Should
> > >> it
> > >>> have not transferred those shares over as well?
> > >>
> > >> Did you work in split view?
> > >>
> > >> I can replicate what I think you are saying if I don't enter the
> > separate
> > >> splits.
> > >>
> > >> If I go about it the obvious way (in split view) and enter balancing
> > >> amounts then it all works.
> > >>
> > >> However, I'm still on 2.6.21 ...
> > >>
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> > >
> >
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>
> --
> David Carlson
> _______________________________________________
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-- 
_________________________________
Richard Losey
rlosey at gmail.com
Micah 6:8