Stock "spin-offs"

[Derek Atkins]

In that case I'd treat it like it came from the sky.  But that's
just me.  I'd still figure out what you need for tax purposes
because that would answer whether to call it equity or income.

-derek

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

> The question is not necessarily how to account for it for tax purposes.  
> My question is: How do I conceptually make it "appear" in gnucash?  
>
> I know I can create the stock account, that is not my issue.  
>
> Do I treat the spin-offs as if they "fell from the sky", or is there a 
> better way to do this (almost like a stock spit)?  
>
> BTW: The quantity of GM stock was not changed, nor did I pay for the new 
> stock, other than capital gains tax.
>
> -----Original Message-----
> From: Derek Atkins <warlord at MIT.EDU>
> To: "Bobby Goins" <goins at iglou.com>
> Date: Fri, 19 Mar 2004 11:11:20 -0500
> Subject: Re: Stock "spin-offs"
>
>> 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 
>> >      
>> >
>> > _______________________________________________
>> > gnucash-user mailing list
>> > gnucash-user at lists.gnucash.org
>> > https://lists.gnucash.org/mailman/listinfo/gnucash-user
>> >
>> >
>> 
>> -- 
>>        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
>> 
>
>
>

-- 
       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