Money: How Cost Basis Is Calculated on Portfolio Value Report (129967)
The information in this article applies to:
- Microsoft Money 2004 Deluxe
- Microsoft Money 2003 Deluxe
- Microsoft Money Deluxe 2002
- Microsoft Money 2001
- Microsoft Money 2000 Deluxe
- Microsoft Money 99
- Microsoft Money 98
- Microsoft Money 97
- Microsoft Money 98 Deluxe Edition
- Microsoft Money 98 Financial Suite
This article was previously published under Q129967 SUMMARY The "Portfolio Value by Investment Account" report in
Microsoft Money (the Investment Market Value Report in Money 3.0) calculates
the cost basis of investments. Money determines the cost basis by adding the
amounts spent to purchase the investment and the purchases made when
reinvesting dividends, and subtracting the cost basis returns from any sell
transactions. MORE INFORMATION Sell transaction returns are based on the IRS standard of
First In First Out (FIFO) unless particular lots are specified (in Money 99 and
Money 98). The price of sell transactions is not considered in calculating the
Cost Basis portion of the Market Value Report.
For example, if you
purchase 100 shares of Stock A at a price of $25 on 1/1/94. At this point, your
Cost Basis is $2500.
On 12/31/94 you receive a reinvested dividend
of 1 share at $26. At this point, your Cost Basis is $2526.
On
1/1/95, you purchase 100 more shares of Stock A at a price of $27. Your Cost
Basis is $5226.
You sell 100 shares on 4/1/95 for $30. According to
the FIFO standard, the original 100 shares will be used in calculating the
original Cost Basis. $2500 will be subtracted from your Cost Basis of $5226 to
leave you with an adjusted Cost Basis of $2726.
| Modification Type: | Major | Last Reviewed: | 1/5/2005 |
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| Keywords: | kbinfo kbMoneyInvest KB129967 |
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