split-0ff

[stetrekve]

Does anyone have experience with stock split-offs like AT&T did with
AWE where you kept your original number of AT&T shares but got a bunch
of new shares in their wireless company AWE? I cannot get quicken to
make the correct entries. In fact, a split-off is not even one of the
options.

Stetrekve

[A Count]

> Does anyone have experience with stock split-offs like AT&T did with AWE where you kept your original number of AT&T shares but got a bunch of new shares in their wireless company AWE? I cannot get quicken to make the correct entries. In fact, a split-off is not even one of the options.

In some cases, receive a cash dividend from the first holding and use the
cash to buy the shares of the spin-off...

In other cases, receive a return of capital to reduce the basis of the first
holding and then use the return of capital (as a deposit) to buy the shares
of the spin-off...

[Libe|ralsarelairs|]

A Count wrote:
||| Does anyone have experience with stock split-offs like AT&T did with
||| AWE where you kept your original number of AT&T shares but got a
||| bunch of new shares in their wireless company AWE? I cannot get
||| quicken to make the correct entries. In fact, a split-off is not
||| even one of the options.
|||
||
|| In some cases, receive a cash dividend from the first holding and
|| use the cash to buy the shares of the spin-off...
||
|| In other cases, receive a return of capital to reduce the basis of
|| the first holding and then use the return of capital (as a deposit)
|| to buy the shares of the spin-off...

The second method does NOT comply with either U.S. or Canadian tax law. The
first method is, more or less, the assumed default choice in Canada. SUch
spun off shares are considered foreign interest income..taxed fully, at
their FMV at the time they are POSTED to your portfolio. However, since
2000, in Canada, (like the states) one can ELECT to defer the income tax on
the spun off shares until the shares are disposed off. Adjusted cost base on
both the original shares AND the spunoff shares must be reduced. This
information is available on the website of the parent share company on how
to allocate this. Remember local tax laws may vary.

[A Count]

> || In some cases, receive a cash dividend from the first holding and || use the cash to buy the shares of the spin-off... || || In other cases, receive a return of capital to reduce the basis of || the first holding and then use the return of capital (as a deposit) || to buy the shares of the spin-off... The second method does NOT comply with either U.S. or Canadian tax law. The

No, the second case is predominate in the U.S. What they do is give out a
basis percentage split between the parent company and the spin-off...

[Don]

stetrekve wrote:
Does anyone have experience with stock split-offs like AT&T did withAWE where you kept your original number of AT&T shares but got a bunchof new shares in their wireless company AWE? I cannot get quicken tomake the correct entries. In fact, a split-off is not even one of theoptions.Stetrekve
Yes I did the AT&T spin off. Go to your investment account. Go to Enter Transaction, than to corporate spin-off. Enter the info. If you get cash for fractional share than enter sell transaction after you recourd the spin off . Have all the info of the spin off (ex. New share per old share and cost per share old an new and Name and symbol). Its not hard. Just have the info (the company sends you the info or go to there WEB site).

Don

[medrxman]

Here is the worksheet:
http://www.att.com/ir/ss/tbi/worksheets/taxbasis7.html

"stetrekve" <K7AWB@MSN.COM> wrote in message
news:1108095765.982632.77230@o13g2000cwo.googlegroups.com... Does anyone have experience with stock split-offs like AT&T did with AWE where you kept your original number of AT&T shares but got a bunch of new shares in their wireless company AWE? I cannot get quicken to make the correct entries. In fact, a split-off is not even one of the options. Stetrekve