Stock Spin-Out

[nvsoar]

On 02/19/18 15:25, John Coppock wrote:
> 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
FWIW - Here is a resource for dealing with spin-off basis transactions - 
http://www.costbasistools.com/spinoff/calculator.php
nvsoar