Recording free shares

djmixman's Avatar

djmixman

24 Apr, 2021 04:46 PM

I recently signed up with Webull. Upon making my initial deposit I received a few shares of a stock for free. How do you properly report these in Moneydance? I tried to enter them as a $0 buy transaction but it doesn't seem to record them correctly.

  1. 1 Posted by Stuart Beesley ... on 24 Apr, 2021 05:42 PM

    Stuart Beesley - JUST A FELLOW USER and Toolbox ‘guy’'s Avatar

    Try 0.01 as MD won’t let you have ‘free’ shares.

  2. 2 Posted by djmixman on 24 Apr, 2021 05:59 PM

    djmixman's Avatar

    Even though is a small amount, that brings the account cash balance out of check. Should I just create a "fake" deposit to offset the difference?

  3. 3 Posted by dwg on 24 Apr, 2021 08:52 PM

    dwg's Avatar

    I'm a fellow user.

    While you may have received the share for free I believe they are really a gift and have a value. If you were to record them for nothing and sell them later. Moneydance would show the entire value of the value as a capital gain, is that how they are treated in the Taxation system? Or is the gain deemed to be the sale value less the market value when you received them?

    In my view if it is the later you should use a transaction with the proper price at the time of receipt and then adjust the initial value of the investment account to allow for the funds or draw the funds from say a gift category.

  4. 4 Posted by djmixman on 25 Apr, 2021 08:24 PM

    djmixman's Avatar

    Thanks! That makes its a bit more clear.

    I looked up the closing price for that day the share was received and created a BuyXfr transaction and pulled it from the Income:Gift Stocks category.

  5. djmixman closed this discussion on 02 May, 2021 05:13 PM.

Comments are currently closed for this discussion. You can start a new one.

Keyboard shortcuts

Generic

? Show this help
ESC Blurs the current field

Comment Form

r Focus the comment reply box
^ + ↩ Submit the comment

You can use Command ⌘ instead of Control ^ on Mac