In microsoft.public.money, Bob Becnel wrote:

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Money is doing a basis calculation along the lines of this
definition: http://www.investorwords.com/433/basis.html as if you
were subject to capital gains calculation, and is done on an
investment-by-investment basis.

Since the account is not taxable, the basis method that applies to
taxable investments is not important to you.

Money is not computing the account basis that you want, but rather
is summing up the basis of each investment.

I have two ideas that each might work around things to get what you
need:

1. suppose that instead of the normal ways, you do a Buy of an
investment called "Account Fee Tracker" or some such. Make it a
mutual fund. Then manually enter a quote price of zero dated the day
after you date the Buy of the fake security. Now Money will show
this horrible investment with a basis that corresponds to the fees
you paid. Thus the total basis in the account adds up to what you
put in minus what you took out (zero so far).

2. Enter a RemoveShares transaction to remove the shares. Then do a
ReturnOfCapital transaction dated the next day.

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I was not able to customize a report to sum up {transfers into the
account} - {transfers out}. Perhaps somebody else will figure that
out.

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I have two ideas that each might work around things to get what you
need:

1. Suppose that instead of the normal ways, you do a Sell of $15
worth of shares and a $15 Buy of a pretend investment called
"Account Fee Tracker" or some such. Make it a mutual fund. Then
manually enter a quote price of zero dated the day after you date
the Buy of the fake security. Now Money will show this horrible
investment with a basis that corresponds to the fees you paid. Thus
the total basis in the account adds up to what you put in minus what
you took out (if any).

2. Enter a RemoveShares transaction at $15 (for example) Total to
remove the shares taken to pay the fee. Because it is a
RemoveShares, it will not . That will decrease the basis of the
remaining shares by that $15. Then do a ReturnOfCapital transaction
dated the next day; that will increase the basis back by that $15.
Then enter an expense transaction for the $15 to remove that $15.

Either of those is suggested as a possible *workAround*. I
understand that what you wanted is for Money to do what you wanted
automatically.

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I suspect the earnings that you want for your report is
{contributions - withdrawals (real withdrawals)} - {what Putnam
delivers to your account when you transfer}

If so, just do the math at the time of transfer. In your example, it
would result in a negative number.



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This is both a discussion of why Money does what it does, and how
you could cause Money to get the results you want for basis. I am
not addressing why it is not the way you want it to be. From a
practical point of view, the number you need is apparently tracked
by Putnam.

I can understand your desire to transfer.

In an IRA you can choose to pay the fee with external funds. I don't
suggest that you can do that with your Cloverdale, nor do I suggest
it would be a good idea in any case. It would make the tracking in
Money simpler, tho.

Cal,

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Why would my Putnam statement reflect this same scenario as $990? This is
what I'm trying to reflect.
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Keep in mind that I gave you a simplified version of many transactions. I
could create a report, but it won't transfer correctly when I roll it into
my 529.

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I need the following:

1) cost basis = contributions - withrdrawls (real withdrawls)
2) earnings = reinvestments.

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If I did this, how would I deduct the shares? When I use remove shares,
my cost basis reflects the $985.xx as exemplified above.

Bob

In microsoft.public.money, Bob Becnel wrote:

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Your fund lost money. So when you had to pay that $10 fee, you sold
shares that you had paid about $15 for to raise the $10. Ouch.
Therefore you paid $985 for the shares that remain.


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No, but I am confident that you could come up with the number you
need. A customized report or two may be useful.

Do you need to just come up with three numbers: Contributions,
Withdrawals, and
Earnings=(TransferedAmount - Additions +Withdrawals)?

From the standpoint of understanding the overall performance of the
account, you might do well to enter the $10 as an OtherExpense
transaction, for the fund, into your Investment Transactions
register.

I am using MS'04.

I setup an Investment account for a Coverdall ESA with 1 Mutual Fund from
Putnam. The following is happening and was hoping for some guidance on a
workaround. I am using actual cost basis for the fund and it is
tax-deferred.

1) In year 1 I made a $500 deposit and the cost basis is showing $500,
which I expect.
2) In year 2 I made a $500 deposit and the cost basis is showing $1000,
which I expect.
3) In year 2 I sell $10 in shares to pay for a custodian fee and the cost
basis is showing $985.xx, which I expect it to be an even $990.

It is my understanding the cost basis = buys + reinvest div - sells.
Correct according to the Microsoft KB article on cost basis. If so, why
is it not using an even $10 for the sell?

One other question is whether there is way to enter reinvest dividends
into this account without showing up in the cost basis? I am trying to
track Putnam's statement which does not include this in their use of cost
basis. This is important because I am rolling this account into an
existing 529 which needs to have the accurate breakout of earnings and additions and withdrawls.

Thanks,
Bob