On Thursday, April 22, 2021 at 6:49:49 PM UTC-7 Max Katsev wrote: > > Really? A realized gain is not income? > > Yesterday I had 10 MSFT (that I've bought a year ago at $170) in my > Vanguard IRA account and $2500 in my Fidelity 401k. Today I've sold my 10 > MSFT for $2500 in Vanguard and bought another 10 MSFT in Fidelity. I now > have $2500 and 10 MSFT, exactly as yesterday, but somehow I've made $800 of > income? >
I'm just as amazed as you that you think you *didn't* realize $800 of income. Most tax jurisdictions would agree, but that doesn't seem to be an issue in your case. You now have a stepped up basis in MSFT, with no direct record of why. You also have no clue which lots you sold and which you retained, meaning you have no clue what the tax liability of your portfolio is. You can't make tax adjusted asset allocations or optimizations. Which is why IMO, this boils down to is what you're trying to model. If it's just extremely basic net worth, your simplified model works fine. Go for it. The thing I'd worry about if I were you is not storing cost basis, particularly on what you sell, and not being able to get that from your brokerage in the future when you discover a need for it. -- You received this message because you are subscribed to the Google Groups "Beancount" group. To unsubscribe from this group and stop receiving emails from it, send an email to beancount+unsubscr...@googlegroups.com. To view this discussion on the web visit https://groups.google.com/d/msgid/beancount/313240ec-ee7d-42bf-94d2-d03a083fb7ban%40googlegroups.com.
