handling in-kind distributions

[jrgo...@gmail.com]

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)