Hello all-
I am a new members to the forums and my first post!
I used to own Fidelity Spartan (FSMKX) which changed to FSMAX (apparently the same but lower expense ratio) in August 2008. The brokerage account showed a reduction in FSMKX for X shares and a nearly identical increase in FSMAX.
Then, in January 2010, FSMAX had a merger with a different Fidelity Fun (FUSVX) and exchanged Y shares for approximately double the # of shares in FUSVX.
So the question is - what is the most elegant way to record these transactions in MS Money (I am using 2007). Here are the options I have thought of:
*Simply selling the predecessor and buying the successor will result in a cap gain/loss in the tax reports.
*Selling the predecessor at the overall cost basis and buying the successor at that same basis will preserve AGGREGATE basis, but will still make FIFO cap gain/loss calcs tricky. Also buying the successor at the cost basis will show a large gain at the purchase date as the market value is greater than the cost basis
*Add/remove shares - not sure how this function works
*Splits/merger features in MS Money seem to be reserved for stocks not mutual funds.
I have seen some threads on similar topics, but not quite this one, so forgive me if there was some duplication. I appreciate all thoughts and feedback.
Thank you.
I am a new members to the forums and my first post!
I used to own Fidelity Spartan (FSMKX) which changed to FSMAX (apparently the same but lower expense ratio) in August 2008. The brokerage account showed a reduction in FSMKX for X shares and a nearly identical increase in FSMAX.
Then, in January 2010, FSMAX had a merger with a different Fidelity Fun (FUSVX) and exchanged Y shares for approximately double the # of shares in FUSVX.
So the question is - what is the most elegant way to record these transactions in MS Money (I am using 2007). Here are the options I have thought of:
*Simply selling the predecessor and buying the successor will result in a cap gain/loss in the tax reports.
*Selling the predecessor at the overall cost basis and buying the successor at that same basis will preserve AGGREGATE basis, but will still make FIFO cap gain/loss calcs tricky. Also buying the successor at the cost basis will show a large gain at the purchase date as the market value is greater than the cost basis
*Add/remove shares - not sure how this function works
*Splits/merger features in MS Money seem to be reserved for stocks not mutual funds.
I have seen some threads on similar topics, but not quite this one, so forgive me if there was some duplication. I appreciate all thoughts and feedback.
Thank you.