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Author: pmarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121569  
Subject: Re: Basis of "exchanged" fund shares Date: 2/27/2000 3:14 PM
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<< In January 1998, I purchased shares in a mutual fund. In June 1999, I consolidated several separate accounts from the same fund family into a consolidated account. That transaction was treated as an exchange. >>

What do you mean here? It looks to me like you sold what you had purchased in 1998 and purchased a different fund. This yields a capital gain/loss for the June sale.

<< In December 1999, I sold the shares in one of the funds. >>

If this is one of the funds you bought in June 1999, it's a short-term gain/loss.

<< When I exported my capital gains transactions from Quicken into TurboTax, it treated the June 1999 exchange as having no gain or loss and all of the shares sold in December 1999 as short-term transactions (acquired in June 1999 and sold in December 1999).

Is that correct? >>

Beats me. TurboTax only knows what Quicken is telling it, and Quicken only knows what you told it. I'm more concerned with what your 1099-B had to say.

<< My gut tells me I should use the original purchase dates (going back to January 1998) rather than the date the shares were exchanged. What date should I use to determine the basis and the holding period? >>

My gut says I don't know, because I don't know what you did. Please clarify the points raised above.

Phil Marti
Tax Preparer
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