Non-Taxable transactions-conversion to Vanguard Admiral Shs.

[LBH]

Recently had some Vanguard fund shares converted from regular shares to admiral share status (converted as the value of the account grew to certain threshold - result is lower internal expense allocation), which is a non-taxable transaction with carryover basis. Any guidance on recording this transaction in fund manager? Downloaded transaction correctly shows Old shares were sold and new were purchased, but with capital gain.

Thanks,

Len

[Mark]

Hi Len,

I'd suggest deleting that downloaded sell/buy, and instead recording it as a split. Record the split at a ratio of <New shares> for <Old shares>. This will prevent a capital gain event from occurring.

[LBH]

OK Mark. I will give that a try. Thanks.