Note: If you want the system to select the capital gains account automatically, select Tools | Transaction Activity Options from the Transaction Activity menu and select the short- and long-term capital gains accounts you want to use.

In recording the sale of a marketable security, the system:

• Calculates and records the capital gain or loss.
• Calculates the previous unrealized gain or loss amount and reverses.
• Reduces the balance of the asset account to zero.
• Records the information for sold date, number of shares, cost basis, and proceeds in Asset and Liability Information. It also changes the Asset and Liability format type to 13. This data then appears on the Schedule D reports.

There are 9 capital gain categories in your Master Chart of Accounts list in the Class: Income, Group: Investment Income. They include:

• Capital Gains
• Capital Gains - Property
• Capital Gains - Short Term
• Capital Gains - Mid Term
• Capital Gains - Long Term
• The remaining 4 of those categories are "User Defined"

You need to set up all of your capital gain accounts into one or more of these default capital gain categories.

If you have renamed the categories and use them for other types of accounts, you will have to reorganize your chart of accounts.

Once you have put the various capital gain accounts into any combination of these 9 default capital gain categories, all of them will pop up on the capital gain accounts list in the transaction activity option box.

If you have renamed categories and do not know which are the default capital gain categories any more:

1. Go to the transaction activity option box
2. Select one of the capital gain command buttons, and a list will appear of all "capital gain" accounts you have available to choose from.
3. Locate those accounts on your custom chart of accounts and you will know which category you will need to "adjust" back to a capital gain category and move the capital gain accounts to.