Problem with rounding in reverse stock splits

I would simply edit the transaction to show the correct number of shares.

Companies round down when doing these consolidations (reverse splits). They then send you a cheque (sorry, check) for the fractional amount.

That's because 166.6667 is the correct answer.

Because you shouldn't.

It won't.

Yes, your tax records will be wrong.

What WILL happen in this case is that the company will not give you the

0.6667 shares, but will send you a check instead. You should then enter a sale of 0.6667 shares for the amount received.

Ira Smilovitz

This is for Quicken 2005 for Macintosh.

Say I have 500 shares of something that reverse splits 1 for 3. Quicken divides 500 by 3 and gives you the integer plus the remainder; in this case, you get 500 shares out and 166.6667 shares in. That's because 166.6667 is the correct answer.

The problem is that you can't manually key-enter 166 or 167.

Because you shouldn't.

Say that the company rounds up, and you get 167.

It won't.

Is there anything wrong with deleting the transaction and entering either (a) one MS (move shares) out for 500 - 167 = 433; or (b) two MS transactions one for move out, one for move in? Later, this will be moving into TurboTax. Yes, your tax records will be wrong.

What WILL happen in this case is that the company will not give you the

0.6667 shares, but will send you a check instead. You should then enter a sale of 0.6667 shares for the amount received.

Ira Smilovitz

Now why didn't I think of that?  When it happened to me I entered a sale for 1 share which I had to predate before the R-split transaction to get the books stright, I eneded up entering the short term gains tax form by hand for that year.   Don S

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