Stock Spin-Out

[David Carlson]

Les,

Usually a stock spin-off splits the before spin-off cost basis between the
after spin-off stocks according to documents provided by the parent
corporation to the SEC and shareholders which also explain how details such
as fractional shares and various expenses are to be treated.

The worksheet that nvsoar provided the link to helps with calculating
details.

I thought that there was also a stock split assistant built into GnuCash to
construct the transactions.  Check the help or tutorial manual s for that.

David C




On Feb 20, 2018 9:57 AM, "Les" <lelliott5 at gmail.com> wrote:

Thanks for both replies.  I used a zero price and the number of shares with
a description.  (John's procedure)  But I was not sure if the procedure I
used was correct (best).

Regards,

Les



On 02/19/2018 05:47 PM, nvsoar wrote:

> 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
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