Thanks to both of you. I don't think the .txf export is correct either,
because I'm pulling my hair out to be sure I didn't lie to the IRS last year.

Neil's experience is the same as I have had. I've been a Money user forever.
When MS is presented a more than trivial problem, they seem to shoo me away
with non-sense answers. It really annoys me but what can a person do?

My recollection is that -- in such a situation -- one report is incorrect,
but others are correct. Export of txf files is, I believe, correct.

--
Michael Gordon


"W'" <W[at]discussions.microsoft.com> wrote in message
news:A8D82403-B63A-4E03-8F6B-2E47ADC2C1A7[at]microsoft.com...
- quote -

I reported the same problem to Microsoft and they claimed it was not an
error. Below is the simple example that I reported (with a new file).

If you buy 2 lots of a mutual fund and then sell or transfer some of the
shares (quantity greater than the original number of shares purchased in the
first lot), the cost basis is incorrect.

I demonstrated this to Microsoft and they agreed the results are wrong but
they say "that is the way the program is designed", it is not a bug.

To prove the bug for yourself, perform the following transactions.

In investment account #1
6/1/2004 buy 422.9 shares of mutual fund FMIMX at a price of 19.00 and no
commissions
2/1/2005 buy 795 shares of mutual fund FMIMX at a price of 22.00 and no
commissions
10/26/2006 transfer 500 shares of mutual fund FMIMX from this account to
investment account #2

In the above example the 2 purchases of FMIMX cost a total of $25,525.10.
Now go to the Portfolio view and look at the "cost basis" column grand total
and it shows $24,777.26 thereby increasing your capital gains reported to
the IRS.

If enough people call Microsoft about it maybe they will fix it. Right now
you may be reporting incorrect capital gains to the IRS (my examples lowers
the cost basis and would raise your capital gains amount).


--

Neil


"W'" <W[at]discussions.microsoft.com> wrote in message
news:05F8D926-B61D-4935-8FAE-17D28E22481C[at]microsoft.com...
- quote -

I'm using MM06 on XPsp2

"W'" wrote:

- quote -

I have a problem with the cap gains reporting...

Investments purchased in one account are then transferred to a second
account. In the second account they are sold. The re-allocate lots option
shows that the sales are correctly spread over several dates, corresponding
to the purchase dates in the first account. However, when I run a cap gains
report, the purchase date in each case is the date the investments were
transferred to the second account. So the reallocate lots query contradicts
the cap gains report, even when the sales are FIFO's. This has the result of
scrambling short term and long term gains.

Is this a feature or a bug? (I have cleaned this file a million times, so it
is not detectably corrupted.)