in-kind distribution from retirement a/c

[JeanneMarie]

If you transfer securities from a retirement account to a non-retirement account (an in-kind distribution), you get a new tax basis: market value on the day of the transfer. Fund Manager asks for market value of transferred shares and reflects the correct value in the Data Register of the receiving account. But I'm getting the original cost as the tax basis in reports. Given that Fund Manager tracks OOP separately (and I wouldn't trade that away), allowing me to adjust the tax basis would be much better.

I realize this is not a very common transaction, but the same step-up (or -down) in tax basis happens when shares are gifted--a little more common I'd guess.

So is there a way to make Fund Manager give me the correct tax cost basis in reports? And if not, then this is a feature request. Perhaps an additional field in the transfer dialogs?

Thanks for listening,
Jeanne

[Mark]

Hi Jeanne,

Fund Manager tracks both "tax" and "oop" basis.

Did you use "Transfer Between"? If so, the tax basis is moved as it was in the source investment. If you want to change it, you can edit the Transfer In transactions. In the Transfer In dialog you can enter separate OOP and Tax cost basis figures.

[JeanneMarie]

Yes! That fixed the report. I'm not sure how important it would be, but when I adjusted the tax basis, I was asked for the date acquired. I'm entering the date of transfer, which is the date of this new tax basis. Makes sense? Or do I want to retain the original purchase date with the new basis? I don't see where it might come into play but might it?

Thanks so much.

[Mark]

Hi Jeanne,

Usually when you transfer shares, the tax basis "date acquired" is the date you originally bought them. I'm not sure of the tax specifics for your case here. You might want to ask your tax advisor or research it. This date is used in determining whether your gains/losses when you sell are short or long term.

[JeanneMarie]

Oh, okay. You've told me enough.
Thanks.

PS: So the transfer-in requires the original purchase date plus the new tax basis.