tag:infinitekind.tenderapp.com,2009-01-14:/discussions/investments/236-accounting-for-a-stock-spin-offInfinite Kind: Discussion 2018-03-17T09:02:31Ztag:infinitekind.tenderapp.com,2009-01-14:Comment/374064162015-07-16T23:51:52Z2015-07-16T23:51:52ZAccounting for a stock spin off<div><p>On 10/1/14 ADP spun off stock of CDK. My Fidelity statement
shows no change in the number of ADP stocks I own, but 30 new
stocks of CDK. This is noted as a Distribution with zero cost, i.e.
I acquired the CDK stock at no cost, but it was worth $33.60 at the
end of the month.</p>
<p>I found the knowledge-base article on this, but it talks about
SellXfr the old shares, then BuyXfr two sets of new shares. But My
old shares (ADP) are unchanged. MD won't let me simply add shares,
I guess it wants them to come from somewhere. If I try to put in a
zero amount for the share price it overrides it with $100.</p>
<p>How can I account for a stock spin-off in the form of a
distribution?<br>
thanks<br>
Patrick Stirling<br>
<a href="mailto:pms@psconsult.com">pms@psconsult.com</a></p></div>pmstag:infinitekind.tenderapp.com,2009-01-14:Comment/374064162015-07-17T02:03:40Z2015-07-17T02:03:40ZAccounting for a stock spin off<div><p>I would look at how this is being handled for taxation purposes
to get a guide. For example one common method is for a company to
do an in place Return of capital and then an in place purchase of
the new shares at a set price. It is often done this way as assets
are transferred to the new company. You get no money out of it but
value is transferred to the new company and this is reflect in the
cost base of your investment without there being an immediate
capital gain or income event.</p></div>dwgtag:infinitekind.tenderapp.com,2009-01-14:Comment/374064162015-07-17T15:17:20Z2015-07-17T15:17:20ZAccounting for a stock spin off<div><p>Sorry, I wasn't clear. I didn't mean how to account for it in
the tax sense, but how to enter the transaction(s) into MD.
Fidelity records it as a distribution, the new shares just appear
in my account, adding value like a dividend but paid in stock. MD
has a quite limited set of actions for investment transactions,
none of which seem to fit this. Quicken has a simple "add" which
just adds new shares to the account, but MD has no equivalent. I
suppose I could find the dollar amount, record that as a dividend,
then buy the shares with it, but that seems rather clumsy.<br>
Patrick</p></div>pmstag:infinitekind.tenderapp.com,2009-01-14:Comment/374064162015-07-22T22:31:39Z2015-07-22T22:31:39ZAccounting for a stock spin off<div><p>Here is the Faq for how to account for a stock spin off:
<a href="http://help.infinitekind.com/kb/investments/how-to-account-for-a-stock-spin-off">
http://help.infinitekind.com/kb/investments/how-to-account-for-a-st...</a></p>
<p>If this does not fit the particulars of how your security was
spun, then please give me the exact details and I will advice a
method for entering into MD</p>
<p>Tom Freeman<br>
Infinite Kind Support</p></div>Tom Freeman