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

Before you begin

• 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 website www.irs.gov.
• These steps only apply to mutual funds. 

Instructions

To switch the tracking basis for a security:

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

Important: While Quicken does track FIFO, files with mutual funds from prior to 2012 may have Use Average Cost selected (in order to satisfy tax laws at that time).

If you are seeing average cost basis, but prefer to see FIFO, uncheck the Use Average Cost checkbox.

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