How to update Cost Basis without changing Current Value

[ljbc01]

Hi Mark
I have a strange problem with one security. It is a money market-like investment. I.E. you buy and sell "shares" in dollar amounts with a constant price of $1. And you get dividends monthly. Normally the Cost Basis and the Current Value should be identical. However, I have discovered that this investment is occasionally decrementing the Cost Basis while the Current Value reflects the actual dollar amounts used. The decrements are very small like 9 cents on an investment of $20,000. Not a significant amount but enough that my Cost Basis in FM doesn't match my broker statement.

Unfortunately I no longer have an account with this broker so I can't ask them to correct the Cost Basis. Also there is no indication in the broker reports to justify this Cost Basis value change.

So I am left with having to jig the Cost basis by a small amount whenever this occurs.

I have made a few attempts using Transfers but they always change both amounts.

Any suggestions?

Cheers - Lloyd

[Mark]

Hi Lloyd,

You can lower your tax cost basis by recording a "Return of Capital" type of distribution for the amount you'd like to lower the cost basis.

[ljbc01]

Thanks Mark - that works for the security. The cost basis and current value are different by the amount of the ROC.

However, the ROC has added a transaction in the default cash account in the amount of the ROC value. This has now put the cash balance out by the amount of the ROC value. This occurs if my ROC transaction does not check the Reinvested box.

If I check the Reinvested box then the Tax Basis and End value go up by the ROC value.

Arrrgghhhh. What am I doing wrong??
Why is an ROC transaction altering the cash balance - doesn't seem logical.

[Mark]

Hi Lloyd,

An RofC distribution is paying out money, so if you have a default cash account, that money will get deposited into the cash account. You can just delete the purchase of cash transaction.

[ljbc01]

Got it!

Thanks for your patience and sage advice.