Re: Spin-off

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In Reply to: Re: Spin-off posted by Mark on February 02, 2006 at 11:25:25:

: : 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

Thanks

Solution 1 works better since it keeps the historical data balanced but it is awful awkward! Given the volume of spin-off, buy outs for cash plus stock, etc. there must be a better way. Does the FM Professional version handle it better?

Jim

Replies:

• Re: Spin-off Mark 13:02:00 02/06/06 (0)