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Posted by sharx35 on June 13, 2007, 4:50 am
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> Hi, Elliott.
>
> This question comes up pretty often here, so it should not be hard to find
> a full answer by just scanning a few messages. In fact, the answer is in
> the Quicken Help file.
>
> The short answer: Use Quicken's wizard for Corporate Securities Spin-Off,
> but where it asks for the "costs" of the old and new shares, enter the
> post-spinoff fair market values for each of them. You should be able to
> find these values on the parent corporation's website just a few days
> after the event, probably on the Investor Relations page.
>
> Remember that your total cost basis does not change, but it is now
> allocated among the old and new shares in the ratios of their fair market
> values immediately after the spinoff. If you receive cash for a
> fractional share, you must first record the transaction as though you
> actually received the share, and then record sale of that fraction for the
> cash, subtracting its newly-calculated basis to determine your gain, which
> will be long-term or short-term depending on how long you held the
> original shares.
>
> If you have trouble after reading the Quicken Help file and prior messages
> here, please post back. If you tell us the name of the company, we can
> probably help you find its website.
>
> RC
> --
> R. C. White, CPA
> San Marcos, TX
> (Retired. No longer licensed to practice public accounting.)
> rc@grandecom.net
> Microsoft Windows MVP
> (Currently running Vista Ultimate x64)
>
>> Using Q2005.
>>
>> How do you enter a stock spinoff - i.e., company spins off a new company
>> and I get so many shares of the new company.
>>
>> Thanks
>
An excellent, and thoughtful, response. Once again, do the due diligence on
YOUR OWN, before posting the problem here.
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