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SymbolTransferOut Transaction type

I am having trouble with transferring stocks "in kind" to a new broker. The cap gains don't come out correct in the new account.

When transferring a stock to another broker, do I need to adjust the sales price in the SymbolTransferOut transaction so the price equals the purchase price thus making the capital gain equal to zero? Or do I simply specify the sales price as the fair price on the day of the sale?

In the new account, the opening balance would be the sell value at cost from the old account?
Is that the same as specifying the original book value in "CostBasisOverride" when using the SymbolTransferIn type transaction?

Thanks very much for clarifying this issue.

Comments

  • Hello,

    Assuming that you want to keep "Original" cost basis at new broker, you do following:

    For SymbolTransferOut you specify Price (price on the day of the transfer) and it is recommended (but not required) to specify CostBasisOverride
    For SymbolTransferIn you specify the same Price from the previous "Out" transaction and the same "CostBasisOverride" from the previous "Out" transaction.

  • OK; so no need to adjust Transfer out price to get cap gain of zero in the old account?
  • YOu still want to see the price increase in the old account, but NOT realized capital gain in the old account. If you do as I said above, your original account tracks that symbol until it is transfered out and all gains are applicable to old account up to that date. Then you do a transfer and start tracking the same symbol in the new account. When you sell that symbol in the new account, Capital gain will be calculate from CostBaseOverride value.
  • Understand. When I sell the stock, remaining issue is the difference between cost basis calculated in PS (Average Cost) and cost basis my broker is using (FIFO), That will result in different cap gain between PS and my brokerage statement. So I need to adjust cost basis override so it matches FIFO cost basis used by my broker to see the same cap gain. Is that correct? I think I read that you have no plans to implement FIFO cost basis in PS. Is that still true? Thanks for all your feedback and the great model you created.
  • Yes, you are correct - after sale you will need to adjust cost basis based on your FIFO method. No plans right now to implement FIFO cost basis into PS.
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