Thanks! I've been lurking for a year or so, I love this forum.
You make an interesting point about the double-accounting when I purchase the points just for GS. It is double-dipping in the same way when I bought my toilet lock I didn't subtract the value of points received from the cost basis. I'm going to have to change my accounting in this instance.
However, in the transfer case, I think my accounting policy stands. Technically when you are transferring your cash outlay is 0. However, the dividend miles do cost you something, and that's the drop in currency value. Technically transferring 1000SPG to DM shouldn't yield 1000DM because SPG is more valuable. A "true" 1:1 transfer would yield 1562.5DM
At this point you have a choice of how to represent this loss. I chose to give it a cash cost. A 562.5 point loss is a financial cost of (1.6 * 562.6) $9.00. However you could equally well give it a cash cost of $0 and a net point loss of 562.5
I think either is equally valid. The cash cost for me keeps accounting simpler, as you did "gain" those DMs.
Mike, I have been following your blog by the way! Fun to see how other people are doing. I'm hoping to go for 100,000 this year also.