Switch the Tracking Basis of a Security From Lot Identification To Average Cost

Caution: If you switch to average cost when tracking a security, Quicken will discard lot identifications associated with previous sales of the security. If you switch to lot identification, Quicken will assume first in/first out (FIFO) for existing sales of the security.

The IRS restricts when you can switch between methods of calculating the cost basis for a security. For more information, refer to the Stocks and Bonds chapter of IRS Publication 550, Investment Income and Expenses. This publication is available from the IRS Web site www.irs.gov.

To switch the tracking basis for a security:

  1. From the Quicken Investing menu, choose Security List.
  2. Right-click the security you want to change and choose Edit.
  3. Select or clear the Use Average Cost checkbox to switch to average cost or lot identification, respectively, and then click OK.
  4. Read the warning message. Click Help for additional information, or click OK to close the message window.

If you are switching a stock from average cost to lot identification, you may want to specify lots for all of its sell transactions:

  1. From the Investing menu, choose Security List.
  2. Select the desired security, and then click Report.
  3. Click Preferences, choose Reports only on the left, then select QuickZoom to investment forms, and then click OK.
  4. In the report window, double-click the oldest transaction displaying Sell, SellX, or ShrsOut in the Action column.
  5. Click Specify Lots and complete the selected column. If you are unsure of which lots to specify for a given sell transaction, check your statement or with your broker.
  6. Click OK, and then click Done.
  7. Repeat steps 4 through 6, working from oldest transaction to the newest.
  8. Close the Security Report window and repeat steps 2 through 7 for other securities as necessary.
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