How to Adjust Basis/Share

[MDAnderson]

I have a default cash account. The basis/share should be $1. All transactions in the account are recorded at $1. Interest earned is reinvested at $1. Price is $1, of course. Yet, the basis/share shows $1.005254. This results in a skewing of both overall cost basis and unrealized gain...wouldn't be a big deal if I were only dealing with $1000, but I'm not...how can I fix this, or can you help me figure out how it got that way in the first place?

Let me add, I noticed a fractional share difference today between the broker's statement and my records, so I did go into those investments and adjust the shares to match the statement...and I have a sneaky feeling that's what caused the problem.

Many thanks, MD

[Mark]

Hi MD,

Your cost basis is set by the purchase/sell prices, which you confirmed are all $1. You should also confirm that your commissions are $0 on these transactions. They normally are for cash transactions, but you can verify. In addition, any distributions of the type "Return of Capital" and optionally "Account Fee" will modify your basis. Do you have any distributions of these types? You can control whether or not "Account Fee" type of distributions affect your basis by going to a report window, and selecting "Options / Report Preferences... / Capital Gains" and checking or un-checking the option "Include Account Fees in Basis".

[MDAnderson]

Account Fees in Basis...that did it. Problem solved. Thank you!