How to handle company buyouts?

[tedzo]

I am using the generic import function.

If a company is bought by another, how is that represented in the generic file import function?

Thanks.

[stevetone]

This is something I just came up against as well, although I am not importing transactions.

How should a merger be recorded? Seems like a sale of the acquired company shares and purchase of the acquiring company shares is not quite correct, as the basis date for the purchase of the new shares would be incorrect.

Along those lines, there are often cash-outs of partial shares, as well as per share cash generated by the transaction.

How best to handle?

Steve

[Mark]

Hi tedzo and stevetone,

To record a merger, just use a "split" transaction. Record the split ratio as <new_shares> for <old_shares>. You can then change the name/symbol in the investment properties. If you have a partial share that was sold, record a sell of this partial share. If you get cash per share, record this as the appropriate type of distribution. If this cash that you get back lowers your tax cost basis, record it as a "Return Of Capital".