Alternatives to Quicken (must run in Windows 2000)

[JohnBF]

Actually, the "Howard K.Dent" software test. Howard, if you can't find problems with it, it passes.

[Howard Kaikow]

They both are way too expensive.

I may look into getting involved with the Windows port of GnuCash.

[Howard Kaikow]

It is all too trivial to find problems with such software.
In some cases, I have found outright bugs, e.g., at least one program is incorrectly calculating capital gains based on average cost basis
In other cases, the programs are victims of lack of standards for rounding amongst Fidelity, AIM, Janus, etc.
In other cases, well, I', fed up enough to look into porting GnuCash.
At worst, I could have a private version that does what I want.

[JohnBF]

Last time I looked at GnuCash, I don't recall it having investment management capabilities. When is the stable Windows port being released?

Post back what you find about it to this thread.

[Howard Kaikow]

Stock and mutual fund accounts are listed as features.
I need to find out whether I can use C/C++ in VS .net, or whether I must download GCC or some other freebie C.
It is my understanding that the download for the Windows version, with source, is over 200MB.

[Howard Kaikow]

Success, for at least one issue.

Found what I wanted.

In US Treasury regulations, Section 1.1012-1 of 26 CFR Ch, 1 (4-1-06 Edition), on page 39, right-hand column gives an example using rounding "to the nearest cent".

So Fidelity is doing it right and certain financial software is wrong, i.e., wrong with respect to calculating average cost basis.

Took many hours of talking to IRS/Treasury attorneys and searching data bases.

I've reported this to two of the software products, let's see how long it takes to get a fix.
Of course, by that time, my trial period will likely have expired for each program.

[JohnBF]

Howard, since the IRS is fine with indivdual payers rounding each return line to the nearest dollar, they are going to tell you to waste someone else's time about rounding to the cent. http://www.irs.gov/pub/irs-pdf/i1040.pdf page 22.

For reference http://www.irs.gov/pub/irs-pdf/p550.pdf

[Howard Kaikow]

The rounding of items on return lines is not relevant.

When you calculate the average cost basis, say it turns out to be $77.70793806, you have to round to the nearest cent.
Say there are 1000 shares involved.

1. $77.71 results in a cost basis of $77710.
2. $78 results in a cost basis of $78000, i.e., reducing capital gains by $290.
3. Values between $77.71 and $78 have the obvious effect.

And even more shares exacerbates the issue of not properly rounding.

The intermediate calculation must be to the nearest cent as specified in the IRS regulation.
The final capital gan may be rounded to a whole dollar when entered in the return,

See example 1 on page 39 of the reg I cited.

[JohnBF]

> See example 1 on page 39 of the reg I cited

You cited the location, you didn't cite the actual CFR text. Since you didn't cite the actual text, I thought you were talking about rounding the net gain or loss. In a brief review I could not find the CFR on-line, do you have a URL for CFR 26 in entirety?

If the programs you are looking at are rounding the per unit basis (cost) amounts or the per unit proceeds amounts to the penny, I wouldn't use them. I don't round the per unit cost or proceeds when I calculate gains and losses; I round only on the total basis and proceeds. However, since you

> Took many hours of talking to IRS/Treasury attorneys and searching data bases

you do it your way, and all the best to you.

(Unitl I see that CFR text, I'm guessing that "The intermediate calculation must be to the nearest cent as specified in the IRS regulation" is actually the per unit basis multiplied by the units traded, and the per unit proceeds multiplied by the units traded, but ...)

[Howard Kaikow]

I am talking about rounding the average cost basis. to the total cost or the net gain.
I do not recall whether I copied the URL anyplace.

For purposes of US IRS, the average cost is to be rounded to 2 decimal places.
It is the average cost basis, i.e., the total cost divided by the number of shares that is to be rounded to two decimal places.

One has to follow the regs, lest one gets audited.

[Howard Kaikow]

I just tried the Windows version of GnuCash.
I downloaded the most recent (unstable) binaries.
"Unstable" is an understatement.

I'll have to try the more stable versions of Windows GnuCash.
I'll let y'all know the outcome.

[Howard Kaikow]

Binaries are not available for earlier versions.
Version 1.8.5 is denoted as being stablem, but changes are occurring rapidly.