Changing basis

[sollner]

Hi Mark,

I have a stock that spun out part of its operation into a new company, giving one share of the new company for every four shares owned of the original company. This had the effect of lowering the price of the original company without changing my shares held.

I would like to increase the basis of the new company, which is now zero, so I can properly track its progress. For the same reason, I would like to lower the basis for the old company, since now it shows a significant loss due to the spinout. Can you tell me the proper way to change these bases in FM?

Thanks,
Gerry

[Mark]

Hi Gerry,

You can use the Spin-off Dialog box to do this. You can also record these transactions manually without using that dialog. To see how it is done, see the documentation in the above link.

[sollner]

Thanks, Mark! You think of everything, as I should have expected.
Best,
Gerry