Home Page link  

Spinoff problems with Quicken 2005

  
Groups | Search | About
User Password
Register Now! Lost Password?

Quicken Personal Finance Discussions - Quicken - personal finance software discussions

 Post an article  get this group's latest topics as an RSS feed add this group's latest topics to your My MSN content add this group's latest topics to your My Yahoo content  add this group's latest topics to your Google content  YahooMyWeb Yahoo!  Google Google  Windows Live Favorites Windows Live  del.icio.us del.icio.us  digg digg  Add to Netscape Netscape
Subject Author Date
Spinoff problems with Quicken 2005 juju 07-21-2007
Posted by juju on July 21, 2007, 3:32 pm
Please log in for more thread options
 Using Quicken 2005 for my 401k account, I tried to enter a
"Corporate Securities Spin-off" of Disney funds to Citadel Broadcasting
and entered the date 6/12/2007 and it resulted in two transaction entries
1/12/2007 RtrnCap Disney
1/12/2007 Bought Citadel

With the dates incorrect for some reason I tried to edit the two
transactions, but when I tried to correct the date it gives an error
You must enter a date on or before 1/12/2007

Can I just manually create two transactions manually using the
correct date or is there anything magical about using the "Spin-off"
transaction window?

TIA

Posted by juju on July 21, 2007, 4:03 pm
Please log in for more thread options
 Gee... I found some "magic" that Quicken did when I used the
"Corporate Securities Spin-off". For each of all my historical
BUY transactions of Disney (going back to 1997), Quicken
created a BUY transaction for Citadel.

Can I bypass all these transactions and just manually create
the two transactions (RtnCap & Bought)?

juju wrote:
> Using Quicken 2005 for my 401k account, I tried to enter a
> "Corporate Securities Spin-off" of Disney funds to Citadel Broadcasting
> and entered the date 6/12/2007 and it resulted in two transaction entries
> 1/12/2007 RtrnCap Disney
> 1/12/2007 Bought Citadel
>
> With the dates incorrect for some reason I tried to edit the two
> transactions, but when I tried to correct the date it gives an error
> You must enter a date on or before 1/12/2007
>
> Can I just manually create two transactions manually using the
> correct date or is there anything magical about using the "Spin-off"
> transaction window?

Posted by John Pollard on July 22, 2007, 9:57 am
Please log in for more thread options
juju wrote:
> Using Quicken 2005 for my 401k account, I tried to enter a
> "Corporate Securities Spin-off" of Disney funds to Citadel
> Broadcasting and entered the date 6/12/2007 and it resulted in
> two
> transaction entries 1/12/2007 RtrnCap Disney
> 1/12/2007 Bought Citadel
>
> With the dates incorrect for some reason I tried to edit the
> two
> transactions, but when I tried to correct the date it gives an
> error
> You must enter a date on or before 1/12/2007
>
> Can I just manually create two transactions manually using the
> correct date or is there anything magical about using the
> "Spin-off"
> transaction window?

The Spinoff transaction is really a pseudo-transaction; it just
generates one RtnCap/Bought pair for every lot of the spinning
off company that you own.

I have no idea why Q2005 won't let you change the date of those
generated transactions; I entered a test spinoff and had no
problem modifying the date of the resulting, Quicken generated,
transactions.

I suspect that 1/12/2007 is when you bought your Disney shares;
the date Quicken generated isn't incorrect when you consider
what is needed and how Quicken tries to provide it.

When the dust clears, you want to show that you "acquired" the
shares of the new company on the same date(s) you "acquired" the
shares of the old company: a RtnCap/Buy, dated the same as the
date of each lot of the old company, does that, but it's a bit
misleading since it makes it look like you owned the new company
before the new company existed.

If you just change the transaction dates of the RtnCap/Bought
transactions, you will not have the correct "acquisition"
date(s) for the shares of the new company.

You can take a slightly different approach than Quicken does;
you can use a RtnCap/Shares-Added pair for each lot of the old
company. You can date those transactions on the date of the
spinoff, but put the date of the purchase of the old company
shares in the Shares Added "Date Acquired" field (and the cost
of the old lot in the "Total Cost" field). [If you Edit the
Bought transaction to be a Shares Added transaction, you should
only have to change the two dates (Transaction and Acquired).]

You'll also have to handle the RtnCap differently since, by
default, it wants to add cash to your account, and if you don't
use a "Buy" transaction to "acquire" the shares of the new
company, that RtnCap cash will just sit in your account. So you
change the RtnCap transactions to have the name of the
investment account where the transaction is recorded, in the
"Transfer account" field.

--
John Pollard
First initial underscore Last name at mchsi dot com
Please reply to newsgroup



Similar ThreadsPosted
Quicken 2005 Premier and Vista Ultimate Problems January 6, 2007, 9:43 am
Question on Spinoff June 12, 2007, 11:08 am
Tim Hortons spinoff from Wendy's January 23, 2007, 9:34 pm
Corporate Securities Spinoff April 22, 2007, 1:48 pm
Embarq - spinoff cost basis May 19, 2006, 8:05 am
Anyone Having Problems With Quicken.com? March 2, 2008, 3:28 pm
Quicken Server problems? January 11, 2007, 6:30 pm
Discover Card Quicken Problems??? August 21, 2006, 11:44 pm
Quicken (99) and Money coexisting on same PC - any problems? September 4, 2006, 2:08 pm
Quicken 2006 and MSWindowsXP problems November 16, 2006, 9:08 am

Contact Us | Privacy Policy
This site is not affiliated with Intuit - makers of Quickbooks and Quicken software
This site is not affiliated with Sage Software - makers of Peachtree accounting software
XML SitemapXML Sitemap