[GNC] Handling Stock Spinoffs

[Dr. Gideon Fell]

My answer, which I've been doing for a while, is to go the the 
originating company and have the cost taken out of there and use that as 
a buy cost of the spin-off.
	For example Berry just recently spun off Magnera. so the cost basis, as 
reported by your brokerage, for Magerna I handle as coming out of Berry 
and then being used in a "buy" of Magnera. This handles the cost as a 
return of capital from Berry. The only complication, if any, is cash in 
Lieu for fractional shares of the spun-off company. This I finessed as a 
dividend from Magnera. This gets it
	e.g. 34 shares Magnera was spun off with a cost basis of $400.00, so 
$400.00 was put as coming from Berry.

	I hope this is clear.

Ron B.


On 12/13/24 19:24, Alan Taylor wrote:
> Hello,
> 
> I have searched the archive with no real resolution. I have several fairly simple stock splits to handle. I have done lots of reading and I think I understand the principles, but still don’t have a solid best practice for applying it in GnuCash.
> 
> So for a simple (e.g.) 1 for 10 split, no cash involved, does anyone have any suggestions ?
> 
> Best Regards, Alan
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