Stock "spin-offs"

[Derek Atkins]

I would suggest you ask your tax advisor and/or accountant.

I can answer the question of how to account for it in gnucash,
once you know which accounting approach you're using.  But I have
no idea which is the proper accounting approach.

It probably depends on:
  a) did you lose any GM stock?
  b) did the Raytheon/Delphi stock have any value when you acquired it
  c) did you have to pay anything for the stock?

How you account for it probably depends on all of these answers, but
again, I suggest you talk to your accountant.

-derek

"Bobby Goins" <goins at iglou.com> writes:

> How does one handle stock "spin-offs"?
>
> For instance, I have some General Motors stock.  General Motors "spun 
> off" Raytheon and Delphi.  I received stock in each of these companies.
>
> I don't know how to handle the new stock.  Do I:
>      - treat it as a gift, or 
>      - consider it as part of income (such as dividends)?
>
> I have no problem in taking care of subsequent transactions concerning 
> the new stock.  My problem is how to handle the "creation" of the stock 
> in my portfolio.
>
> Bob 
>      
>
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-- 
       Derek Atkins, SB '93 MIT EE, SM '95 MIT Media Laboratory
       Member, MIT Student Information Processing Board  (SIPB)
       URL: http://web.mit.edu/warlord/    PP-ASEL-IA     N1NWH
       warlord at MIT.EDU                        PGP key available