[GNC] stock spinoff and lots

[Michael Matz]

Geoff,

Thanks for detailed example. It looks similar to a suggestion made in 2012
that I had dismissed because it closes out the original lot,  which I am
hoping to avoid. Why does that not create a capital gains transaction?

https://lists.gnucash.org/pipermail/gnucash-user/2012-March/044159.html

I will look into this more tomorrow, when I have GnuCash in front of me
again. This may be my best option but it feels like a feature is missing.

Thanks also for the mention of this investment lot report. I've read about
it but haven't tried it yet. That may be a good reason to upgrade.

Michael


On Sun, Sep 29, 2024, 9:50 PM Geoff <cleanoutmyshed at gmail.com> wrote:

> Hi Michael
>
> Assuming that this spin-off has not crystallised a capital gains event
> for you, and the reduction in the parent cost base becomes the child
> cost base, you can do this with a single nett zero-value transaction which:
> (1) Closes out your original parent lots at original acquisition cost
> (2) Creates new parent lots at new reduced cost
> (3) Creates a new child lot at inherited cost which is the difference
>
> Then simply scrub out your lots in the Lot Editor.
>
>
> To illustrate this, I have created a simple scenario where you have two
> parent lots and the split is done on an 80% parent, 20% child basis.
> For simplicity I have assumed that the strike price for the split is
> $100, and the new post-split stock prices are $80 and $20.
>
> There are two attachments.  The first shows how to account for this
> scenario in a spreadsheet, and the second shows how to execute it in
> GnuCash.  The original (unrealised) capital gain is preserved but now
> split over both of the stocks.
>
> Note that the new Investment Lots report may not be available to you if
> you are running an older version of GnuCash.  This example was done on
> Windows 10 using GnuCash v5.8 Build ID: git
> 5.8-117-g6aeca0040e+(2024-09-26)
>
> Hope this helps.
>
> Regards
>
> Geoff
> =====
>
> On 30/09/2024 7:52 am, Michael Matz wrote:
> > I've been using GnuCash for my personal finances for many years. I've
> > not used the stock lot feature until recently and am working thought my
> > old data and adding stock lots and capital gains transactions.
> >
> > How do I add a transaction to a lot, which changes the cost basis but
> > not the number of shares?
> >
> > In the user guide, I found a section about return of capital, which says
> > to enter a transaction in the stock account with 0 shares. However, that
> > transaction is not in the "Splits free" list in the lot editor so I
> > can't add it to the lot.
> >
> > https://www.gnucash.org/docs/v5/C/gnucash-guide/invest-retofcap.html
> >
> > My need is slightly different, a spin-off rather than return to capital,
> > but it is essentially the same in that it changes the cost basis but not
> > the number of shares. I found this post which gets me most of the way
> > there:
> >
> >
> https://lists.gnucash.org/pipermail/gnucash-user/2018-February/074963.html
> >
> > Following this, I can create a lot and the correct capital gains
> > transaction for the spin-off stock. However, the same issue exists with
> > the 0 share transaction for the parent company - it can't be added to a
> > lot so the cost basis for the parent stock is wrong.
> >
> > Am I missing something or is there no way to add a transaction to a lot
> > which changes the cost-basis but not the number of shares?
> >
> > Thanks,
> >
> > Michael
> >
> > GnuCash 5.4, Ubuntu
> >
> >
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