Unrealized gain: how to record it


Z

Z Man

Each year I make a contribution to my 401k. I have invested $5,000 over the
past few years. My 12/31/04 statement shows a market value of $5,400.
Assuming this is just one fund, and nothing has been sold and no dividends
or interest have been paid (but the fund has simply appreciated in value),
how do I record the unrealized gain in Quicken, such that I retain the
$5,000 historical cost, but still show the correct current value? I cannot
find a spot to enter a 'market value' adjustment.
 
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M

Mike B

Z Man said:
Each year I make a contribution to my 401k. I have invested $5,000
over the past few years. My 12/31/04 statement shows a market value
of $5,400. Assuming this is just one fund, and nothing has been sold
and no dividends or interest have been paid (but the fund has simply
appreciated in value), how do I record the unrealized gain in
Quicken, such that I retain the $5,000 historical cost, but still
show the correct current value? I cannot find a spot to enter a
'market value' adjustment.
Best thing to do is to enter the price history of the securities in your
401(k) account. That way you will show the value of the 401(k) at market
value but won't affect your real cost basis. You don't want to enter
unrealized gains in your investment accounts, because that may also mean you
having to enter unrealized losses at a later stage and that can turn very
messy and is bad accounting practice anyway (unless you are keeping books
for Enron).
 

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