This dialog is available from the Edit / Spin-off... menu command under the Graphs window. It is also available at Edit / Investment Data / Spin-off... in the Portfolio Editor window, or by right clicking on any investment and choosing the Investment Data / Spin-off... popup menu command.
Use this dialog to record a spin-off in the specified (parent) investment. This dialog supports recording either a taxable or tax-free spin-off. The following fields are available:
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Date |
The date of the spin-off. As the date is updated, the cost basis information for the parent investment is updated. |
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Pre Spin-off Parent Info |
Shows information on the parent investment (the investment spinning off a child). The cost basis and number of shares owned are shown for the specified date. All this information is reported before the effects of the spin-off. This information can be used to help figure out the number of shares and cost basis for the spun-off child investment. |
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New (Child) Investment |
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Name |
The name for the newly spun-off child investment. |
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Symbol |
The symbol for the newly spun-off child investment. |
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Shares Received |
The number of shares received as a result of the spin-off. |
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Cost Basis |
The cost basis of the received shares. |
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Market Value |
The market value of the received shares. |
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Taxable Status of Spin-Off: |
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Taxable |
When recording a taxable spin-off, Fund Manager will create a new child investment with a transfer in for the shares received on the date of the spin-off. Fund Manager will also record a 'Return of Capital' distribution in the parent investment for the cost basis amount. An additional 'Other" distribution in the parent is recorded such that the 2 distributions add up to the market value of the spun-off shares. |
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Tax-Free |
When recording a tax-free spin-off you will also specify an accounting method to use. The accounting method determines which shares are still owned as of the spin-off date. Fund Manager will create a new child investment, and record one or more Transfer In transactions in the child. There will be one transfer in transaction for each open lot in the parent. Each transfer in transaction occurs on the spin-off date, but maintains the tax basis date from each open lot's original purchase date in the parent. Fund Manager will also record 'Return of Capital' and 'Other' distributions in the parent investment, just as in the taxable case. |
The new child investment will be saved to the same folder as the parent investment.
Transfer In Transaction Dialog