Spin offs - Tyco and Kraft (added twist: 2 accounts involved)

The way around that issue is to spinoff to a second new company (Kraft 2) in the second account, then locate and edit the generated transactions for Kraft 2 and change the Kraft 2 security to the Kraft Food Groups security (the security created bt the first spinoff through the first account).

Beautiful! Thanks, Tod.

Now, if I recall correctly, Qkn would throw activity back to when each lot was purchased, thereby dealing in stock months/years before it came into existence, and altering history. On my first Spin off wizard foray - before recovery - that's just what happened. Not holding breath that Intuit has changed spin off processing in 2013.

Only thing left to find out is the spinning companie's cost basis detailed statements for the events, whenever they release those data. Until hen downloads will remain in limbo.

Set Out Below is an edited excerpt of a 2007 exchange I participated > Step 1, of course, is to understand what happened in the real world. >

As an old Quicken user, and follower of this group, this issue comes up constantly. Think AT&T.

Quicken's share for share acquisition has the identical issue, which I have found works much better for corporate name changes, such as Philip Morris becoming Altria Group back in 2003. (If you use "corporate name change, it changes (or did in Q2004) the name all the way back. But I like my reports to show Philip Morris through 2003, and then Altria. Doing a 1 share for 1 share acquisition transaction preserves the basis, and name change date.

Altria posted a Shareholder Tax Basis information sheet today. They used closing prices on 4/2 for FMV. I'm not sure I agree, but its not worth the headache of ever having to deal with the issue.

With the information sheet in hand, I tried the Quicken Spin Off transaction method, and it generated a Kraft acquisition date that was the same as my old Philip Morris purchase date. I don't recall when PM purchased Kraft, but Philip Morris (as it then was) sold off 11% of the Kraft stock in June 2001. SEE KRAFT 10-K: Thus, the Quicken method will generate incorrect reports during the 2001-2007 period.

As an alternative, I tried the Quicken Return of Capital transaction to reduce my Altria basis, and the Add Shares transaction which let's me include both my allocable Kraft basis (which is the same as my Altria return of capital) and assign my PM acquisition date to the Kraft shares. This has the advantage of accurate rerports of my holdings or net worth. It also has the DISadvantage of including the Return of Capital as cash in the account. A Miscellaneous Expense for "Fudge Factor" takes care of that.

It isn't pretty. But I think it works. (And if it doesn't, I look forward for your always elegant explanation). Next, i need to deal with my fractional share cash-out, and then on to my 401(k) where I've used its dividend reinvestment option.

ONE LAST POINT -- the folks who provide the stock quotes to Quicken have edited all of last weeks quotes to reflect the WI (when issued) quotes. I was expecting the Friday 3/30/07 quote to get changed, but they changed the entire week !! I only discovered this because I dated my transaction as Saturday

Keep up the great explanations.

John Pollard Post reply4/5/07

Other recipients: dllapides wrote:

You don't need the extra MiscExp transaction; just modify the Return of Capital transaction to "transfer" the cash back into the investment account itself.

THANK YOU VRY MUCH !!!! (Not flaming. On the contrary, expressing elation.)