Money (97 or 98) cannot handle 1997 tax law changes

Money (97 or 98) cannot handle 1997 tax law changes

Post by Davi » Sun, 26 Oct 1997 04:00:00



   The new tax law now allows for two types of capital gains (based on
holding period) which are taxed at different rates. A third type comes into
effect later. Neither version of money allows for this - and hence are no
longer able to track investments (e.g. come the end of 1997, Mutual fund
companies will be distributing capital gains split into new categories, and
the Money software will provide no way of entering this information).
    I posted a similar question several weeks ago, and received a response
that Microsoft would be posting a knowlege base article on this subject. I
have since been searching for articles either by the keywords 'capital
gains', or 'tax law'. Neither has revealed such an article. Does anyone know
if one has been posted?
    Intuit claims that Quicken 98 handles the new tax law. My preference is
to stick with Money 97 (Money 98's performance problems make it
unappealing). But to date, I see no sign that Microsoft intends to fix the
problem in Money 97, which will leave me no choice but to switch (back) to
Quicken. Any comment, Microsoft?

 
 
 

Money (97 or 98) cannot handle 1997 tax law changes

Post by Porter Humphre » Sun, 26 Oct 1997 04:00:00


This is a multi-part message in MIME format.

------=_NextPart_000_0069_01BCE15D.2C5E0AA0
Content-Type: text/plain;
        charset="iso-8859-1"
Content-Transfer-Encoding: quoted-printable

Microsoft can speak for itself, and I'm just just ruminating here - but =
Money 98 does allow you at Options --> Investments to set the holding =
period for long-term capital gains or losses. However, its tax reports =
will still divide sales into only two groups, short- and long-term. As =
for a mutual fund's capital gain distributions, I suppose you could =
treat them as "Other income" and assign them to personalized categories =
that reflect the new rate structure. But what will that do to your basis =
tracking if you reinvest that income? Money won't know that it should =
increase your basis by the amount of the distribution. Looks like a =
tangled situation, and one that won't easily be worked around.

I'm confident that Turbotax will do a good job of separating sales into =
the various categories and will apply the correct rates, as long as the =
user provides the correct purchase and sale dates. But Money's own =
investment and tax reports will be in some cases erroneous, forcing the =
user to keep separate records with a spreadsheet. And a good financial =
program shouldn't do that.

I too searched Support Online for the promised article and didn't see =
it. Unfortunately Intuit doesn't offer a test-drive version of Quicken =
98, so I can't verify their claim that it handles the complex new rules. =
Those rules, for anyone interested, are summarized at =
http://www.smbiz.com/sbw1087.html=20
--
Porter Humphrey. =20

       The new tax law now allows for two types of capital gains (based =
on
    holding period) which are taxed at different rates. A third type =
comes into
    effect later. Neither version of money allows for this - and hence =
are no
    longer able to track investments (e.g. come the end of 1997, Mutual =
fund
    companies will be distributing capital gains split into new =
categories, and
    the Money software will provide no way of entering this =
information).
        I posted a similar question several weeks ago, and received a =
response
    that Microsoft would be posting a knowledge base article on this =
subject. I
    have since been searching for articles either by the keywords =
'capital
    gains', or 'tax law'. Neither has revealed such an article. Does =
anyone know
    if one has been posted?
        Intuit claims that Quicken 98 handles the new tax law. My =
preference is
    to stick with Money 97 (Money 98's performance problems make it
    unappealing). But to date, I see no sign that Microsoft intends to =
fix the
    problem in Money 97, which will leave me no choice but to switch =
(back) to
    Quicken. Any comment, Microsoft?
   =20
   =20
   =20

------=_NextPart_000_0069_01BCE15D.2C5E0AA0
Content-Type: text/html;
        charset="iso-8859-1"
Content-Transfer-Encoding: quoted-printable

<!DOCTYPE HTML PUBLIC "-//W3C//DTD W3 HTML//EN">
<HTML>
<HEAD>

<META content=3Dtext/html;charset=3Diso-8859-1 =
http-equiv=3DContent-Type><!DOCTYPE HTML PUBLIC "-//W3C//DTD W3 =
HTML//EN"><!DOCTYPE HTML PUBLIC "-//W3C//DTD W3 HTML//EN"><!DOCTYPE HTML =
PUBLIC "-//W3C//DTD W3 HTML//EN"><!DOCTYPE HTML PUBLIC "-//W3C//DTD W3 =
HTML//EN"><!DOCTYPE HTML PUBLIC "-//W3C//DTD W3 HTML//EN"><!DOCTYPE HTML =
PUBLIC "-//W3C//DTD W3 HTML//EN"><!DOCTYPE HTML PUBLIC "-//W3C//DTD W3 =
HTML//EN"><!DOCTYPE HTML PUBLIC "-//W3C//DTD W3 HTML//EN">
<META content=3D'"MSHTML 4.71.1712.3"' name=3DGENERATOR>
</HEAD>
<BODY bgColor=3D#ffffff>
<DIV><FONT color=3D#000000>Microsoft can speak for itself, and I'm just =
just=20
ruminating here - but Money 98 does allow you at Options --&gt; =
Investments to=20
set the holding period for long-term capital gains or losses. However, =
its tax=20
reports will still divide sales into only two groups, short- and =
long-term. As=20
for a mutual fund's capital gain distributions, I suppose you could =
treat them=20
as &quot;Other income&quot; and assign them to personalized categories =
that=20
reflect the new rate structure. But what will that do to your basis =
tracking if=20
you reinvest that income? Money won't know that it should increase your =
basis by=20
the amount of the distribution. Looks like a tangled situation, and one =
that=20
won't easily be worked around.</FONT></DIV>
<DIV>&nbsp;</DIV>
<DIV>I'm confident that Turbotax will do a good job of separating sales =
into the=20
various categories and will apply the correct rates, as long as the user =

provides the correct purchase and sale dates. But Money's own investment =
and tax=20
reports will be in some cases erroneous, forcing the user to keep =
separate=20
records with a spreadsheet. And a good financial program shouldn't do=20
that.</DIV>
<DIV>&nbsp;</DIV>
<DIV>I too searched Support Online for the promised article and didn't =
see it.=20
Unfortunately Intuit doesn't offer a test-drive version of Quicken 98, =
so I=20
can't verify their claim that it handles the complex new rules. Those =
rules, for=20
anyone interested, are summarized at <A=20
href=3D"http://www.smbiz.com/sbw1087.html">http://www.smbiz.com/sbw1087.h=
tml</A>=20
</DIV>
<DIV><FONT color=3D#000000>--<BR></FONT>Porter =
Humphrey.&nbsp;&nbsp;</DIV>
<BLOCKQUOTE=20
style=3D"BORDER-LEFT: #000000 solid 2px; MARGIN-LEFT: 5px; PADDING-LEFT: =
5px">

    =


    The new tax law now allows for two types of capital gains (based=20
    on<BR>holding period) which are taxed at different rates. A third =
type comes=20
    into<BR>effect later. Neither version of money allows for this - and =
hence=20
    are no<BR>longer able to track investments (e.g. come the end of =
1997,=20
    Mutual fund<BR>companies will be distributing capital gains split =
into new=20
    categories, and<BR>the Money software will provide no way of =
entering this=20
    information).<BR>&nbsp;&nbsp;&nbsp; I posted a similar question =
several=20
    weeks ago, and received a response<BR>that Microsoft would be =
posting a=20
    <FONT color=3D#000000>knowledge </FONT>base article on this subject. =
I<BR>have=20
    since been searching for articles either by the keywords =
'capital<BR>gains',=20
    or 'tax law'. Neither has revealed such an article. Does anyone =
know<BR>if=20
    one has been posted?<BR>&nbsp;&nbsp;&nbsp; Intuit claims that =
Quicken 98=20
    handles the new tax law. My preference is<BR>to stick with Money 97 =
(Money=20
    98's performance problems make it<BR>unappealing). But to date, I =
see no=20
    sign that Microsoft intends to fix the<BR>problem in Money 97, which =
will=20
    leave me no choice but to switch (back) to<BR>Quicken. Any comment,=20
    Microsoft?<BR><BR><BR></BLOCKQUOTE></BODY></HTML>

------=_NextPart_000_0069_01BCE15D.2C5E0AA0--

 
 
 

1. Money and 1997 tax law - revisited

For anyone who cares, I ordered Quicken98 to try it out (they give a one
month return window), because their sales force twice told me it fully
supported the new tax law. It does not even attempt to. When I called Intuit
again, they said support would come in a maintenance release - which they
said would be issued soon. I no longer believe anything they tell me.
   Point is, Money has to support the new tax law (as does any financial
package). Work arounds don't cut it. I personally use the realized and
unrealized capital gains reports to make investment decisions (particularly
at end of year), and those reports have to break out capital gains
appropriately.
   I was hoping that Microsoft would issue a maintenance release for Money
(all versions) - but they haven't said anything yet. A knowledge base
article was promised - I'm still waiting. I guess since Intuit dropped the
ball, there is no pressure on Microsoft to do better.

2. Measuring chassis temperature on 4006 with SNMP

3. exporting prior year tax info (1997-1998)?

4. Weird 'Missing' Non-Delivery Report...

5. 1997 Tax Payment

6. PDF viewer & Telnet

7. tax reports for 1997

8. 97 to 98, if I get the rebate, do I forfeit my license for 97?

9. money 97 -- Tax report won't print before tax deductions

10. mico money version 5.0 1997

11. money 1997

12. money 1997 to 2000