I made an error and sold the wrong stock. I bought it back
the next day, but the wash rule is in effect. Does Bivio
automatically take this into account at tax time or is this
a manual adjustment? Thanks.

Robert Morita wrote:
> I made an error and sold the wrong stock. I bought it back
> the next day, but the wash rule is in effect. Does Bivio
> automatically take this into account at tax time or is this
> a manual adjustment? Thanks.

You'll need to do a manual adjustment. Delete the sell and
the purchase transactions. You'll also need to enter a
return of capital transaction to account for the commissions
on the two trades and differences in the sell and buy
prices.

Eric Dobbs
bivio Inc.

Thanks Eric. I need some clarification though:

1. I understand that I need to delete both the "incorrect"
sell and the subsequent buy transactions.

2. I don't know how to enter the return of capital
transaction in Bivio. Should I use Charges under the
Accounting menu?

3. Could I net the total loss + commissions together or do
you recommend that they be posted separately?

Thanks.


Eric Dobbs wrote:
> Robert Morita wrote:
> > I made an error and sold the wrong stock. I bought it back
> > the next day, but the wash rule is in effect. Does Bivio
> > automatically take this into account at tax time or is this
> > a manual adjustment? Thanks.
>
> You'll need to do a manual adjustment. Delete the sell and
> the purchase transactions. You'll also need to enter a
> return of capital transaction to account for the commissions
> on the two trades and differences in the sell and buy
> prices.
>
> Eric Dobbs
> bivio Inc.

Thanks Rip. The link that you provided won't work without a
password, but I found the full article using the search
function. Your help is greatly appreciated. As another one
of those "treasurer for life" folks, I knew that this wasn't
one of those "if" situations, but "when". I'm glad that
this resource is around.



Rip West wrote:
> Robert,
>  
> There is an explanation on how to enter a wash sale on the
> IClub website at
> http://www.iclub.com/internal/sos/articles/index.aspx?id=1157&cat=-1&product=-1&&
>  
> However, that one is a little complicated because the wash
> sale was not for the entire purchase. Here is an example of how to enter a wash
> sale in bivio.
>  
> Assume you purchased 100 shs of This Is A Dog, Inc [TIAD]
> on 7/10/07 for $50 a share plus a commission of 14.99. So you have 100 shares
> with a total cost of 5,014.99. Now on 1/5/08, you mistakenly sell those shares
> for $45 a share, less a commission  of $14.99, for a net amount of
> $4,485.01. So, the first thing you have to do is to delete that
> sale.
>  
> Assume that you entered a purchase to cover the mistaken
> sale on 1/8/08 for 100 shares of TIAD at 43.50 plus 14.99 in commissions. This
> resulted in a purchase for a total amount of 4364.99. Delete that
> purchase.
>  
>  
> Now, we will enter the receipt of th $4,485.01 as a return
> of capital. Go to Investments. Select the security [in this case TIAD]. Then
> select the Income Icon. Enter 1/5/08 as the date and Return of capital as the
> distribution type. You don't need anything for the ex div date. For gross
> amount, enter 4,485.01. Select the appropriate account and click
> OK.
>  
> Now we must record the amount of the 2nd purchase of 
> 4364.99 as a NEGATIVE return of capital. You will enter this the same way as you
> did the first return of capital, except that you will enter the correct date the
> money was expended, and enter the amount with a minus sign.
>  
> When you are through, in this example, we would have 100
> shares of TIAD with a net cost of 4364.99 and a holding period going back to
> 7/10/07.
>  
> Let us know if you have more questions on
> this.
>  
>
> Rip
> West
> Saint Paul, MN