NIL COST SHARES
I have been allocated a few shares in a new security at no cost to me. I have set up a new Account and Security, but can't see a way to enter these shares without creating a minus cash balance.
Your help would be appreciated
Royce
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1 Posted by Tom Freeman on 06 Nov, 2015 07:36 PM
How were those shares allocated? There may be tax issues involved and we can not give advice on tax issues.
If they were an employer stock grant then you should create an income category named employer stock grant. You would then do a buyxfer assigned to this category foe the value of the stock. You should be able to get the value from your HR department.
If these were a gift, there are two options based on the taxable nature of this transaction. One is to create an income category named stock gift. Use a buyxfer at the market value of the stock. This creates taxable income. the cost basis is the value of what you received it as.
The other method is to do a buy sale for zero share price. This creates no income and the cost basis is zero. When you sell the security your cap gains will be the full sale price.
If these approaches do not work for you please be specific about the transaction and i will help find a method to enter it in MD.
Tom Freeman
Infinite Kind Support
2 Posted by royce on 06 Nov, 2015 10:05 PM
Thanks Tom,
They were loyalty bonus shares. I re-entered them as a buy transaction at zero share price which gives them a zero value. Then I adjusted the current price to market value.
That worked ok
Thanks again
Royce
3 Posted by Ben Spencer on 06 Nov, 2015 11:50 PM
If you entered the shares as a Buy at a price of zero that should not have affected the cash balance of the account. Can you show me a screenshot of the transaction you entered?
Ben Spencer
Infinite Kind Support
4 Posted by royce on 07 Nov, 2015 04:23 AM
Hi Ben,
I think I did something wrong the 1st time I tried to enter this txn, causing the cash balance to show a negative balance. However, it seemed to work ok when I tried again.
So all is good
You can close this matter now.
Royce
5 Posted by Ben Spencer on 07 Nov, 2015 02:27 PM
That looks correct to me.
Ben Spencer
Infinite Kind Support
Ben Spencer closed this discussion on 07 Nov, 2015 02:27 PM.