[GNC] Recording a "price margin code change"

[Geoff]

Well if that is the case I think you should just mirror those 
transactions in GnuCash.  "Sell" all the old units at that valuation and 
"buy" the new units back for the same consideration.  No capital gains 
will be booked.  Your cost basis *per share* has changed, but not your 
overall cost.

[I am not an accountant.]

Regards

Geoff
=====

On 14/04/2024 9:45 pm, Steven N. Severinghaus wrote:
> As far as I can tell, there were no associated capital gains or losses, 
> fees, or distributions. Frustratingly, the website lists the 
> transactions differently from what shows up in the downloadable CSV or 
> OFX files, though they at least seem to add up. And since the brokerage 
> moved to this new backend, the statement download functionality has been 
> broken, so any futher details that might be there are not available.
> 
> The transactions come in three pairs for each security. (This seems 
> irrelevant, but its interesting that the three are consistently about 
> 75%, 25%, and 0.001% for each commodity.) For each pair, there is a 
> "redemption" transaction and a "purchase" transaction. The dollar 
> amounts for those are the same, but the share price for the purchase is 
> more or less than the redemption price, and so there is a net difference 
> in shares.
> 
> For example, I "sold" $36877.21 of FOO at 2.642 then "bought" it back at 
> 2.727 for the same amount, and therefore have 432.526 fewer shares.
> 
> -Steve
> 
> On 4/14/24 04:21, Geoff wrote:
>> Hi Steven
>>
>> Yes, this type of event is not unheard of.  You need to find out more 
>> information before deciding how to treat it in GnuCash.  In 
>> particular, did this trigger a capital gain/loss event, or does your 
>> existing cost basis carry forward.  Also was there an associated cash 
>> payout or dividend/distribution?
>>
>> Regards
>>
>> Geoff
>> =====
>>
>> On 14/04/2024 12:35 pm, Steven N. Severinghaus wrote:
>>> Hi, all. I had an odd transaction labeled as a "price margin code 
>>> change" show up on a brokerage account recently. It appears to 
>>> represent having "sold" all of my shares at one price, then "buying" 
>>> them back at a slightly different price, with the difference made up 
>>> in having somewhat more or fewer shares, depending on the commodity. 
>>> Afterward, I have the same dollar value in the account, just with a 
>>> different number of shares at a different price.
>>>
>>> Is there a good way to record this in Gnucash? It feels vaguely like 
>>> a stock split or merger, but I don't see exactly how I'd use that 
>>> function.
>>>
>>> I could just enter a single transaction that adjusts the number of 
>>> shares up or down, using the new price. After that, the dollar value 
>>> of the account would be the same as before and the number of shares 
>>> would match what the brokerage says, but there would be a crazy jump 
>>> in the price history for the commodity, and some corresponding income 
>>> or expense that is meaningless (representing the buy/sell of the 
>>> shares at the old price).
>>>
>>> Alternatively, I could just create a new Gnucash account and 
>>> commodity, and basically "sell" all of the shares at the old price, 
>>> then "buy" the new commodity with that money. It would just cause a 
>>> giant, meaningless transaction sequence and would sort of disconnect 
>>> the history of the account. It feels like a worse choice, given that 
>>> the price difference is just a couple percent.
>>>
>>> Hope that makes sense. Any thoughts? Anyone seen this happen before?
>>>
>>> Regards,
>>> -Steve
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