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XPO Spin off of GXO and incorrect Capital Gains being report

Questions about updating prices or transactions in Fund Manager

Postby heidiasst » Fri Oct 08, 2021 11:16 am

Hi Mark,

XPO did a spin off of 1 share of GXO for every one share of XPO back in June of this year.

I checked with the tax department of the Brokerage firm where we held the stock and got the correct split of the cost basis and booked this in FM.

Last week we sold the XPO (the original stock) and the cost basis was almost the entire cost basis of the original purchase. So, that the capital gains last week were understated.

This week we sold the GXO (the spinoff stock) and the cost basis was overstated. The only cost basis it shows on the capital gains report is the cost basis for one share of the stock. I checked in the pricing history and this shouldn't have happened as far as I can tell.

The net of the XPO and GXO cost basis is correct when added together but, it is incorrect on how it is reporting this per trade.

Any assistance would be appreciated.

Heidi
heidiasst
 
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Postby Mark » Sat Oct 09, 2021 2:37 pm

Hi Heidi,

If you use the Spin-off wizard in Fund Manager it should automatically handle the movement of cost basis. The way you can record this is with 2 distributions, a Return of Capital and an Other distribution. The Return of Capital distribution lowers the cost basis, and the Other distribution accounts for additional value transferred, such that the sum of the two add up to the market value.
Thanks,
Mark
Fund Manager - Portfolio Management Software
Mark
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