Hi,
I'm not exactly sure how to properly handle this series of transactions
involving an in-kind distribution.
Suppose I invested $1000 in XYZ Private Fund V and they initially do a
standard cash distribution of $250 and state a remaining revalue to
paid-in-capital of 2x. Then later they do an in-kind distribution of $540
of stock in a public company (e.g. IBM). They later provide details of what
they acquired the stock for and value at the time of distribution (which
could have been bought much earlier than the actual distribution. I can
then decide to keep or sell the stock and pay taxes based on the normal
holding period rules and the capital gains associated with any potential
sale. Also, suppose they tell me the remaining value of the invested funds
is now $1800 on July 1, 2020 and that they purchased the IBM shares in
April 2019 at $100/share and at distribution the price was $180/share (so
you got 3 shares which had originally cost $300) but I don't know the value
of the fund on the distribution date. I only get quarterly updates of the
fund value. How should I record all this? Specifically, how do I record the
purchase details of the IBM shares, the transfer, etc ?
I started creating a price for a commodity called PFV what costs $1/share
when first invested. Does one convert the PFV shares into IBM at the time
of the purchase of the IBM shares?
I started to try to work through an example but wasn't sure if this is the
best way of handling this use case. I have been studying "Trading with
Beancount" but wasn't sure and you can see below around the ??? where I'm
confused.
thanks,
Jonathan
;OPEN ACCOUNTS
2019-01-01 open Assets:taxable:PF:cash
2019-01-01 open Assets:taxable:PF:PFV
2019-01-01 open Assets:taxable:ETRADE:IBM
;INVEST IN THE PRIVATE fund
2019-08-09 * "Private Fund" "initial investment"
Assets:taxable:PF:cash -1000
Assets:taxable:PF:PFV 1000 PFV {1000 USD}
;CASH DISTRIBUTION
2020-07-01 price PFV 2.25 USD
2020-07-02 * "Private Fund" "cash distribution"
Assets:taxable:PF:PFV -100 XYZV {} 2.25 USD
Assets:taxable:PF:cash 250 USD
;IN-KIND DISTRIBUTION
2021-04-01 * "Private Fund" "in-kind distribution"
Assets:taxable:PF:PFV -540 USD ??
Assets:taxable:ETRADE:IBM 3 IBM {100 USD, 2019-04-01} ???
;(ABOVE: I think I need to have the commodities balance so 3 IBM shares
have to have come from some where, right...does this mean I have to
generate purchases of IBm insides PF and do it on 2019-04-01....I don't
know the price of PFV on that day.
;UPDATE PRICE OF PFV (remaining capital is $1800 now)
202-06-01 price PFV XYZ USD (??? based on remaining shares such that value
is $1800)
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