Considerations
GainsKeeper refers to the one-time process of adding cost basis and trade dates to your existing positions as "baselining". These positions ensure accurate record-keeping. After this one-time baseline, GainsKeeper will automatically adjust your basis and gain/loss for all trades, wash sales and corporate actions.
Examples:
Baselining requires two dates: original purchase date for characterizing as a short or long-term security; and baseline date. The baseline date is a post-1998 date where the user knows the shares and cost of the lot.
Click the links below to view detailed examples regarding baselining:
Example 1: Original Purchase Information
100 shares of ABC Co. were purchased for $500, with $50 commission, on August 7, 1997. There have been no corporate actions (splits, mergers, etc.) between the purchase date and 12/31/98. You would enter the original purchase information into GainsKeeper as:
Purchase Date: 08/07/97
Baseline Date: 01/01/99
Shares: 100
Cost: $550
Example 2: Adjust for Corporate Actions
100 shares of XYZ Corp were purchased for $500, with $50 commission, on February 1, 1996. Between 1996 and 1998 there were two 2:1 stock splits. You would enter your adjusted position into GainsKeeper as:
Purchase Date: 02/01/96
Baseline Date: 01/01/99
Shares: 400 (100 x 2 x2)
Cost: $550 (total cost remains the same in splits)