Re: Spin-off

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In Reply to: Re: Spin-off posted by Jim on February 01, 2006 at 19:46:00:

: Old Viacom split completely into two pieces - one became CBS and one became Viacom - New

: As example: on 11/3/04 purchased 210 shares of old Viacom for $7,800 and on 6/1/05 purchased an additional 28 shares of old Viacom of $1,000. On 1/5/06 the 11/3/04 purchase became 105 share of CBS at a cost of $3,090 and 105 shares of Viacom - New at a cost of $4,710. The 6/1/05 purchase became 14 shares of CBS at a cost of $390 and 14 shares of Viacom - New at a cost of $610.

: How do I split old Viacom apart so as to reflect the cost of the new positions and keep the long-term holding period plus not screw up IRS Sch. D and my historical portfolio cost?

: Thanks

Hi Jim,

There are a couple of ways you could do this.

1) You could create 2 new investments, and record the shares you received as of the original purchase dates. For example, create a CBS investment, and record a purchase on 11/3/04 for 105 shares, and a purchase of 14 shares on 6/1/05. Similar for Viacom New. Add these new investments to your portfolio, and remove the old Viacom.

2) You could take the original Viacom investment, and make a copy of it. You would do this in Windows Explorer by copying the investment's .dat file. Now, you have 2 original Viacom investments. Add the second one to your portfolio. For the first one (CBS), record a split on 1/5/06 of 119 for 238. Also record a "Return of Capital" distribution of $5320 to adjust your cost basis. This is the old cost basis minus the new cost basis (7800 + 1000 - 3090 - 390). Change the investment's name and symbol to CBS. Similar for Viacom New.

Thanks,
Mark
--
Mark Beiley
Fund Manager, portfolio management software for Windows 95/98/ME/NT/00/XP/2003

Replies:

• Re: Spin-off jim 12:46:56 02/06/06 (1)
  • Re: Spin-off Mark 13:02:00 02/06/06 (0)