On 02/20/18 11:35, Les wrote:
There is a stock-split function in GC. However it doesn't appear to
do spin-outs. In my case, the company doing the spin-out is doing a 5
to 1 and there are no fractional shares. I just assigned the cost at
0.00 per share.
Les
On 02/20/2018 01:27 PM, David Carlson wrote:
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" <lellio...@gmail.com
<mailto:lellio...@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
Comment: It seems to me that a zero cost for the spun off shares is
incorrect if a non-zero basis exists for the pre-spin off shares. A
zero cost for the new shares will result in a higher than necessary
capital gain when those shares are sold. The easiest way to determine
the new basis for each of the remaining entities that I have found is to
use the cost basis calculator at the link previously provided.
nvsoar
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