Spinoff - how to handle

Hi, ps56k.

You didn't say which Quicken, so I'll assume the current Quicken Deluxe

Use Enter Transactions from an Investment Register. Choose Corporate Securities Spin-Off. Substitute FMV (Fair Market Value immediately after the transaction) where Q asks for Cost per old and new shares. (Cost is what we are trying to determine; we can't input it because we don't know it yet.)

Later, you can Match the downloaded transaction to your manually entered one.

Except for that Cost/FMV terminology faux pas, the wizard handles a typical spin-off correctly.

Remember, I've been retired for over 20 years, so be sure to check with your own CPA for current rules.

RC

-- -- R. C. White, CPA San Marcos, TX (Retired. No longer licensed to practice public accounting.) snipped-for-privacy@grandecom.net Microsoft Windows MVP (2002-2010) (Using Quicken Deluxe 2014 R 7 and Windows Live Mail in Win8.1 x64)

I've forgotten - how do we handle a company spinoff to retain some version of Cost Basis for each of the companies - new & old ?

I'm guessing the downloaded transaction is merely going to want to "Add Shares" for the new symbol - with no Cost Basis.

it's Q 2012 - the spinoff will happen on 6/27/14 - just getting prepared, as it seems like any kind of split/spin causes Schwab to just issue "Add Shares", so we'll see...

Company is RYN with the spinoff being RYAM / WI which is already listed/tracking, but not "issued".

Hi, ps56k.

This part of Quicken has not changed significantly for a decade or more.

The "WI" means "when issued", as you probably know. Those WI shares may sell for more - or less - than the actual shares when they become available after the spin-off.

Schwab is not responsible for your tax return; YOU are. Take their advice into account, but do your own research and make your own determination as to what you will put on your return.

Until 6/27/14, NOBODY knows what the FMV will be for either the new RYAM shares OR the existing RYN shares after they no longer include the RYAM assets. RYN doesn't know; Schwab doesn't know. That's why we have to wait until AFTER the Spin-off to get the post-spin-off market values. There is no way any of us can actually be prepared; we just have to wait.

A few days after the spin-off, RYN's management should post information on their website as to their lawyers' opinion of the FMV of shares of both issues. These opinions of FMV are just that - opinions - but you should be safe to rely on them. The market will actually determine the values.

RC

-- -- R. C. White, CPA San Marcos, TX (Retired. No longer licensed to practice public accounting.) snipped-for-privacy@grandecom.net Microsoft Windows MVP (2002-2010) (Using Quicken Deluxe 2014 R 7 and Windows Live Mail in Win8.1 x64)

it's Q 2012 - the spinoff will happen on 6/27/14 - just getting prepared, as it seems like any kind of split/spin causes Schwab to just issue "Add Shares", so we'll see...

Company is RYN with the spinoff being RYAM / WI which is already listed/tracking, but not "issued".

This is the first time I've run across the "when issued" listing.

Just to see what or how it works, I put a buy order into Schwab for RYAM-WI which was "filled", but of course doesn't show any shares in my account or having money deducted from my account, or having a BUY transaction download to Quicken.

SO - what is the status of my RYAM-WI shares - after my "buy" ?

Kinda looks like a pending transaction, queued for when the shares become avail, but yet I can't cancel the transaction, or sell the shares I don't have.

Hi, ps56k.

I've often heard about them, but as far as I can recall, I've never actually dealt with When-Issued shares. Maybe someone here can explain the details to both of us.

My GUESS is that, as with a Short Sale, our broker lends us - on paper - the shares that are not yet actually available. Then, when the shares are actually issued, he buys some for us and puts them in our account. We may never know - or care - how much the broker pays/paid for the shares. We know only the price we paid for the WI shares. (And I don't know when our holding period starts: when we buy the WI share, or when the shares are actually issued, or when the actual shares replace the WI entry in our account.) But, as I (sort of) understand it, you CAN sell your WI shares before the actual issue date; your broker will handle the details in your account.

Now we'll have to wait for a more-informed explanation from someone who actually knows. Or, I suppose one of us could Bingle (Ding or Google) to find the answer.

RC

-- - R. C. White, CPA San Marcos, TX (Retired. No longer licensed to practice public accounting.) snipped-for-privacy@grandecom.net Microsoft Windows MVP (2002-2010) (Using Quicken Deluxe 2014 R 7 and Windows Live Mail in Win8.1 x64)

This is the first time I've run across the "when issued" listing.

Just to see what or how it works, I put a buy order into Schwab for RYAM-WI which was "filled", but of course doesn't show any shares in my account or having money deducted from my account, or having a BUY transaction download to Quicken.

SO - what is the status of my RYAM-WI shares - after my "buy" ?

Kinda looks like a pending transaction, queued for when the shares become avail, but yet I can't cancel the transaction, or sell the shares I don't have.