Mutual fund transfer

English Transactions
3

Hi Harry,
thanks for the answer. Let me try to explain it with an example:

I first buy 5 “shares” of a mutual fund (Symbol MF1) at cost 1€/share. I would record that as BUY in PP with 5€
After 6 months , the share is valued at 1.5€, so my value is 7.5€ and I have made 2.5€ unrealized capital gain.

TWO DIFFERENT PATHS NOW:

  1. Buy & Sell
    If then I would like to move the investment (7.5€) into another Mutual fund (Symbol MF2) I could SELL the shares of MF1, and BUY 15 shares of MF2 at 0.5€ each. With this method, once a year I have to declare the 2.5€ realized gains, and pay the corresponding 19% Taxes of 2.5€ gains.
    In PP I can delcare it as SALE and in the report it will appear as realized capital gain. No problem.

  2. Transfer between funds
    In Spain, but also in US as well with 401 and IRA, you can TRANSFER the investments from one mutual fund to the other one without selling and and buying, just transfer. I can order the bank to transfer 7.5€ directly from MF1 to MF2. The bank already nows that 7.5€ / 5 shares of MF1 correspond to 15 shares of MF2 @ 0.5€ and transfers the deposit. Most likely they SELL MF1 and then BUY MF2 but, from a tax point of view it is not considered a sale, there is no realized capital gain and there are no taxes to be paid once a year.

And that second case is what I don’t know how to reproduce in PP: I need a transaction to “SELL” but not record it as realized capital gain but as transferred “unrealized capital gain”.

I just found another message in the forum asking for something very similar, unfortunately not very promising answer
Exchange securities within one Security Account

So two questions:

  1. Is there with the newest version any way to record the “trasnfer”?
  2. Is there any way to ask the developers to add this kind of transaction??

Vielen Dank im Voraus :wink:
Antoni