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Posted by Sylvia on January 17, 2007, 9:56 pm
Please log in for more thread options I am using Quicken 2006 Deluxe.
Katie
>Eric:
>
>Companies issue and maintain records on fractional shares of stock.
>
>Quicken works quite well with fractional shares of stock.
>
>Except for those bits of misinformation, the procedure you describe is
>workable.
>
>Katie:
>
>If you follow the procedures described by Eric (but using fractional
>shares of course), you will have the correct number of ATT shares at the
>correct price. Check your figures with those which ATT will provide
>when you receive their paperwork.
>
>But, there are two things to be aware of.
>
>1) The exchange of SBC for ATT will be tax free, but Quicken will
>(incorrectly) report the sale of SBC as a capital gain, and
>
>2) Quicken will have an incorrect acquisition date for the asset. The
>acquisition date for the ATT shares should be the acquisition date of
>the original SBC shares, not the date the SBC shares were exchanged for
>ATT shares.
>
>Depending on the version of Quicken you have (Basic, Deluxe, etc., and
>Year), there may be better ways to record this transaction which will
>avoid these two problems.
>
>Eric Bloch wrote:
>> Except for mutual funds you cannot have fractional shares.
>>
>> 1. You must go back thru ALL of your Bellsouth (BS) transactions and
>> eliminate fractions. If they were caused by splits or dividends reinvested
>> you received a book entry for the shares including fractions and then the
>> fractions were immediately sold for a gain or loss which was long or short
>> depending on the original purchase date.
>>
>> 2. Now take the whole shares and, in Quicken, sell all of them on the date
>> of ATT purchase.
>>
>> 3. Use ALL of the funds received to purchase the 1.325 X (BS shares) of ATT.
>>
>> 4. If you now have fractions of ATT enter a sell transaction for the $$ you
>> received for them. For IRS the gain or loss goes back to the original date
>> of BS purchase but Quicken will think they were acquired on the day of
>> transfer. Same goes for when you finally sell the remaining ATT shares.
>>
>> Eric
>>
>>> On December 29, 2006 I was holding 809.6203 shares of BellSouth Stock.
>>> On that date the exchange to AT&T took place. Could someone please
>>> tell me how to enter this transaction in Quicken 2006 and after making
>>> the change will the cost basis be maintained so that it will be
>>> available for future tax purposes?
>>>
>>> BellSouth Share Exchange
>>> BellSouth shares 809.6203
>>> Exchange Rate 1.325
>>> AT&T Stock Credited 1,072.746898
>>>
>>> Thank you for any help.
>>>
>>> Katie
>>
>>
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