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How to handle a stock spinning off part into a new company?

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dschaller78

Mar 07, 2022 @ 10:29 PM

Exelon recently distributed Constellation stock (1 share for every 3 shares of Exelon owned). Partial shares were paid in cash, but in my case there was an even number of shares of Constellation, so no cash. According to the Exelon statement, one method of calculation shows pre-distribution tax basis should be allocated 70.36% to the Exelon shares, and 29.64% to the new Constellation shares.

How do I handle this in Moneydance? I don't see a single action to do this, and have not thought of a multi-action process that will properly handle this either. Any suggestions?

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1. Stock Spinoff

   The following is an example of accounting for Stock Spinoff, as provided by a Moneydance customer and contributor to the support forum.

   This example is accounting for spinoff of AOL from Time Warner - with the Cash in Lieu of sale from Dec 2009.

   This same method should work for any stock split.

   • First, determine the original acquisition date. Then calculate the correct adjusted cost basis using p...

   See more..

1. dschaller78 closed this discussion on Mar 07, 2022 @ 10:36 PM.