[GNC] Stock spinoff

[David T.]

Well said,  Geoff. 

I'd add that creating the new share is a simple process of making a transaction that adds the new share to its account.

It's the determination of cost basis (for both the original shares and the new share you received) that complicates things. These affect future gains calculations.

David T. ​

On Dec 4, 2022, 3:49 AM, at 3:49 AM, Geoff <cleanoutmyshed at gmail.com> wrote:
>Hi Fred
>
>First up you need more details on this transaction to determine the 
>exact nature of the spin-off, the valuations, and whether ABC treated
>it 
>as a dividend, capital reduction, or combination of both.  Was there a 
>cash payment as well?  Any fractional shares involved?  Were capital 
>gains/losses crystallised or carried forward?
>
>ABC should have sent you information about this, otherwise Google it.
>
>You may find this article helpful:-
>https://www.henssler.com/spin-offs/
>
>Once you have all the details, we can suggest how to record it in
>GnuCash.
>
>
>Regards
>
>Geoff
>=====
>
>On 4/12/2022 11:15 am, Fred Tydeman wrote:
>> In looking at the Help file within GnuCash, I found a section on
>Splits and
>> Mergers.  After reading that section, I still do not know how to
>enter a
>> Spinoff.  That it, I have 25 shares of ABC stock.  They did some kind
>of
>> spin off and gave me 1 share of XYZ stock.  I still have 25 shares of
>ABC.
>> How do I record this?
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