So few question for my education (and this might more be for accounting experts) and it might deviate from David's & David's case:
From reading legal documents of many spinoffs, most -- if not all -- of them do not provide basis for spun-off security but just the ratio, and those documents normally suggest to use the pricing that broker/agent used for the transaction. Is that not true? Isn’t spin-off just simply adding number of shares of spun-off security without basis, and if there is cash-in-lieu of fractional share then proceed from broker is simply sets the prevailing pricing at that shares were liquidated at (still not having actual pricing of the spun-off security) for basis? So based on this, shouldn't this spun-off security be linked to the original security (like dividend is) by zero dollar split when the transaction for spun-off security is created? I might be saying the same thing as below but different way? This is how I recall Quicken did it when I was using it and it reflected correctly in their report. Now it is possible that there might be some magic they may be doing behind the scenes which might not be apparent. -----Original Message----- From: John Ralls <[email protected]> Sent: Thursday, February 12, 2026 11:30 PM To: David T. <[email protected]> Cc: [email protected]; David G. Pickett <[email protected]> Subject: Re: [GNC] How to record a stock spinoff? David, You’re right that there’s no basis transfer with the Stock Split Assistant. I don’t remember offhand what the Stock Assistant does but I do recall that CDB-Man bringing up basis when he and Chris were developing that so it might handle it. The best way that I can think of to record the basis transfer manually is to price the new-stock split and balance it with a 0 amount split in the old stock account more or less like a return of capital. That still doesn’t preserve the fact that the holding period for the new stock really begins when you acquired the old one. I don’t know if the lots scrubber can handle that. Regards, John Ralls > On Feb 12, 2026, at 19:48, David T. <[email protected]> wrote: > > John, > > I don't remember now, since I now use the manual method I mentioned, ISTR > that the assistants create a single whole share split and a cash split, > rather than create and sell off the fractional share. > > The problem I found with this was that there is no price entry made for the > spinoff, leaving the user in some doubt about the basis value of the new > stock. Further, the value of the cash in lieu isn't clearly deducted from the > basis, and I'm not sure the lot manager addresses this. > > I am also not sure whether the basis in Equity gets properly transferred from > the old to the new commodity. I believe it should? > > David T. > > > On February 13, 2026 7:48:16 AM GMT+05:30, John Ralls <[email protected]> > wrote: >> >> >>> On Feb 12, 2026, at 13:45, David G. Pickett via gnucash-user >>> <[email protected]> wrote: >>> >>> GNUCash seems to lack tools to allow me to deal with our 40 CMCSA spinning >>> off 6.2 VSNT, never mind how to handle the $6.70 from the .2 VSNT. I might >>> be in trouble because I started the CMCSA with opening balance, not a >>> historical buy. The basis is deep buried in family and ATT history, >>> derived off a stock option of the wife's first husband, also a David! They >>> have web sites for that sort of thing, but I have no record of his stock >>> receipt! Sometimes I use his death date, when title shifted to his wife, >>> but I am sure that is not a legal fudge. I suspect the difficulty >>> establishing a basis compounds the problems of showing the spinoff. I look >>> forward to having to report capital gains on .2 shares $6.70 ! Is there a >>> basis editor hiding in there somewhere? Maybe I can get the broker to do >>> $6.70 in fractional shares! One tutoring student made me aware that >>> Robinhood has people trading in tiny fractional shares, like 6 places! She >>> wants to keep the shares, as before he died, he said "Never sell, this is >>> good stuff!" I suppose it is another curse on her estate and executor, who >>> might be me! >> >> >> It’s basically the same as a stock split, you just get a different stock >> instead of more CMCSA. Both the Stock Split Assistant and the Stock >> Assistant know how to handle it. The $6.20 is called “cash-in-lieu” because >> they’re paying you cash instead of giving you fractional shares. >> >> Regards, >> John Ralls >> gnucash-user mailing list >> [email protected] >> To update your subscription preferences or to unsubscribe: >> https://lists.gnucash.org/mailman/listinfo/gnucash-user >> Please remember to CC this list on all your replies. >> You can do this by using Reply-To-List or Reply-All. _______________________________________________ gnucash-user mailing list [email protected] To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
