tag:infinitekind.tenderapp.com,2009-01-14:/discussions/investments/7226-how-to-record-stock-rights-that-are-zero-costInfinite Kind: Discussion 2023-01-31T22:20:18Ztag:infinitekind.tenderapp.com,2009-01-14:Comment/565721722022-11-01T05:53:31Z2022-11-01T05:53:31ZHow to record stock rights that are zero cost<div><p>You can’t. The best you can do is use a cost of 0.01.</p>
<p>It’s doubtful that the taxman would consider these zero cost. It’s usual to record the cost at the market value if they were a gift.</p></div>Stuart Beesley (Mr Toolbox)tag:infinitekind.tenderapp.com,2009-01-14:Comment/565721722022-11-01T06:13:00Z2022-11-01T06:13:02ZHow to record stock rights that are zero cost<div><p>Thanks, Stuart - but these are not a gift. They are stock rights issued with a zero cost base because I already own shares in the company - the rights give me the option to buy more of the initial stock off market at a set price - if I sell the rights (instead of converting), then I have to declare the whole sale price (minus commission) as a capital gain (apologies if I'm explaining something you already know).</p>
<p>I appreciate that not every country does stocks/taxes the same, I'm just hoping for accurate reporting.</p>
<p>Thanks for taking the time to respond though.</p></div>cacklehousetag:infinitekind.tenderapp.com,2009-01-14:Comment/565721722022-11-01T06:33:14Z2022-11-01T06:33:14ZHow to record stock rights that are zero cost<div><p>I've just tried an entry in build 4091 for 1000 shares at 0 cost, while upon entry it does show a cost of 0.01 cents per share the total amount shows as 0.</p></div>dwgtag:infinitekind.tenderapp.com,2009-01-14:Comment/565721722022-11-01T09:42:52Z2022-11-01T09:42:57ZHow to record stock rights that are zero cost<div><p>Thanks, dwg</p>
<p>Unfortunately the report is still incorrect if there's anything above zero for the share price :(</p></div>cacklehousetag:infinitekind.tenderapp.com,2009-01-14:Comment/565721722022-11-01T09:54:41Z2022-11-01T09:54:41ZHow to record stock rights that are zero cost<div><p>you could always do a miscexp against the stock to reduce the CB back to zero. Assign the category to a fake/junk tax category....</p></div>Stuart Beesley (Mr Toolbox)tag:infinitekind.tenderapp.com,2009-01-14:Comment/565721722022-11-01T10:18:39Z2022-11-01T10:18:39ZHow to record stock rights that are zero cost<div><p>Problems with the capital gains report are pretty widely known. I do all of my capital gains calculations outside of Moneydance.</p>
<p>Unless/until Moneydance can handle a wider range of actions and then use these to correctly calculate values and subsequently report them correct I doubt there will be an improvement.</p></div>dwgtag:infinitekind.tenderapp.com,2009-01-14:Comment/565721722022-11-01T10:29:34Z2022-11-01T10:29:34ZHow to record stock rights that are zero cost<div><p>I too perform capital gains calcs in a spreadsheet. MD is nearly correct and my SS shows me the MD calculation and the real calculation. Whenever I have a gain/loss I actually record a Xfr txn to / from a CGT category with the opposite side to a junk tax account. Then the correct CGT appears in my income/expense reports.</p></div>Stuart Beesley (Mr Toolbox)tag:infinitekind.tenderapp.com,2009-01-14:Comment/565721722022-11-01T10:39:53Z2022-11-01T10:39:53ZHow to record stock rights that are zero cost<div><p>I also enter the actual capital gains into Moneydance using custom categories so it gets reflected in an Income and expense report.</p></div>dwgtag:infinitekind.tenderapp.com,2009-01-14:Comment/565721722022-11-01T10:49:44Z2022-11-01T10:49:44ZHow to record stock rights that are zero cost<div><p>That's dwg+1 and scb+1 then 😉!</p>
<p>That technique works great for me and means I have a permanent record that can never change (unless I want it to)....</p></div>Stuart Beesley (Mr Toolbox)tag:infinitekind.tenderapp.com,2009-01-14:Comment/565721722022-11-01T10:55:06Z2022-11-01T10:55:07ZHow to record stock rights that are zero cost<div><p>Thanks for this. I was not aware of the reporting issues - as I said, I've only just started using Moneydance (15 days versus 20+ years on MS Money) and am just trying to solve all the little niggles that continue to frustrate me.</p>
<p>I'll try your other suggestions too - appreciate it.</p></div>cacklehousetag:infinitekind.tenderapp.com,2009-01-14:Comment/565721722022-11-01T11:06:04Z2022-11-01T11:06:04ZHow to record stock rights that are zero cost<div><p>As mentioned, CGT can be correct... There are 'situations' that it cannot handle properly....</p>
<p>e.g.<br>
- The UK has rules for buying and selling within 30 days (bed & breakfast). - I can't remember exactly, but accumulation funds with equalisation payments might cause an issue (as there's no good way to deal with these in MD).</p></div>Stuart Beesley (Mr Toolbox)tag:infinitekind.tenderapp.com,2009-01-14:Comment/565721722022-11-01T20:38:02Z2022-11-01T20:38:02ZHow to record stock rights that are zero cost<div><p>To add to the list Moneydance chokes on Returns of Capital and Capital Calls.</p></div>dwgtag:infinitekind.tenderapp.com,2009-01-14:Comment/565721722022-11-01T22:10:03Z2022-11-01T22:10:03ZHow to record stock rights that are zero cost<div><p>ROC is fine for me with a sell zero shares</p></div>Stuart Beesley (Mr Toolbox)tag:infinitekind.tenderapp.com,2009-01-14:Comment/565721722022-11-01T22:15:31Z2022-11-01T22:15:55ZHow to record stock rights that are zero cost<div><p>Oh I do use it like that and the total is ok, the CG report is of course useless, but I also have to use lot matching here for 99.9% of shares and that technique then does not work, hence the need to maintain share transaction data outside of MD.</p></div>dwg