Knowledgebase
Journal In/Journal Out - Moving Positions from One Account to Another
Posted by Henry Gage on 29 December 2010 07:19 PM
Journal In/Journal Out - Moving Positions from One Account to Another

Background:
Within a brokerage or between brokerages the method used to move positions from one account to another is referred to as a Transfer or a Journal. The intent of such trades is to avoid a taxable event that is typically associated with a Sell and Buy.

Sell and Buy create a taxable event because the Sell is reported on a 1099 as broker/barter proceeds and the Buy establishes the beginning of the holding period that is used to determine if a tax lot is short term or long term etc. This means if you reopen a position using a Buy then the holding period is not correct.

Ideally a Journal includes the original opening date for each trade. However most brokerage systems can't handle this so they report a date of the Journal and you loose the original date of the opening trade.

TAPro Journal Out Feature for Moving Positions Out:
1. From the Transactions Screen find the opening trade that you want to move
2. Select Right Mouse and choose Journal Out
3. Complete the dialog and finish the steps

TAPro Journal In Feature for Moving Positions In:
1. From the Transactions Screen select Add
2. From the menu select the security type and Journal In
3. Complete the dialog and finish the steps

Note regarding the Journal check box:
You may notice the standard Add/Modify dialog is used for Journal In. In the case of Journal In, a check mark is placed in the Journal In box. The date transacted is the date the original trade was opened. This date is necessary to respect the original holding period.

Note regarding partial positions moved between account:
If you have a position of 100 that is partially closed and 25 shares remain and should be moved then Journal Out 25 shares then Journal in 25 shares into the new account.

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