Stock Spin-Out

[John Coppock]

This is what I have been doing.  I am new to Gnu Cash.

I'm using Gnu Cash v.2.6.17 on Windows 10 in US dollars.

In 'Tools/Security Editor', create the new spin-off security.

In your brokerage account, create a new sub-account for the new spin-off 
security. Its Account Type will be stock (do this first), currency will 
be shares of the security you just created. If you don't see it show up 
after you created it, go to 'View/Filter by/Other' to show accounts with 
zero totals,

In the new sub-account (tab between fields), enter the date of the 
spin-off, a description, on the next line choose 'Buy' for 'Action', 
enter the shares received in 'Shares', delete the value in 'Price', 
enter the basis of the shares received in 'Buy', on the next line enter 
the name of the parent Stock account, enter 0 for 'Shares', delete the 
value in 'Price', verify the value in 'Buy' is the same as the basis 
entered before, hit enter and you're done.

I've found this seems to handle the basis change for both stocks.



On 2/19/2018 1:37 PM, Les wrote:
> I recently had a stock that owned a significant part of a rather new 
> company and decided to spin it out at a 5 to 1 rate.  Can someone 
> please explain how to do this in GC?
>
> Thanks,
>
>
> Les
>
>
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