XLF Corporate spin off

cegarbage

How do I input xlf/xlre corporate spinoff? Details are here:
http://www.streetinsider.com/Corporate+News/State+Street+Global+Advisors+(STT)+Announces+Distribution+Breakdown+Associated+with+Financial+Select+Sector+SPDR+(XLF)+Modification/12049273.html


I need security name (xlf), the new company (xlre?) new shares issues, cost per old share, cost per new share, and whether or not to check taxable spinoff (i assume yes)

Thanks

mshiggins

QWin or QMac?

cegarbage

Windows 16

hve

I have the same question.  Quicken for Mac 2016 3.5.2

q_lurker

Based solely on the information in the OP's link, this does not appear to fall within Quicken's (and the real world's) definition of a corporate spinoff.  From the link:

The distribution for the special dividend is 0.139146 shares of XLRE or $4.44356 per share of XLF as of September 16, 2016. The dividend distribution will be characterized as both return of capital and income for tax purposes. As of September 16, 2016, the approximate percentage of the dividend that will be treated as return of capital is 74%, and the remaining 26% will be taxed as ordinary income. The amounts and sources of distributions reported are estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund's investment experience during the remainder of its fiscal year and may be subject to changes based on the tax regulations. U.S. Shareholders will receive a form 1099-DIV in early 2017 that will inform them how to report distributions for federal income tax purposes.

This says to me that: 

• XLF is effectively paying out $4.44356/share to its shareholders
• about 74% of that value is a return of capital (non-taxable)
• about 26% is taxable dividend income to the shareholder
• these percentages are subject to change and the shareholder will not know the final values until 1099 information is distributed in early 2017.
• the form of this payout is 0.139146 shares of XLRE.

If that interpretation is correct (and I am not a tax or financial pro), then in Quicken (for Windows) I would be heading a couple of directions.

1. Backup the datafile.
2. Generate a RtrnCap for $3.288 / share (74% of 4.44356) putting cash into your account
3. Generate a Div transaction for $1.115 / share (26% of 4.44356) putting more cash into your account
4. Generate a Buy Shares of XLRE buying up the proper number of shares (0.139146 times as many shares as you have of XLF) for the total cash just generated.  
5. If you come away with an integer number of XLRE shares, then you would be selling the fractional share for what your brokerage should be reporting to you as 'cash-in-lieu'.  

Following that series of transactions, I would be reviewing the cost basis for the XLF shares.  If there is any reason to question the values Quicken shows, I would do Remove Shares and Add Shares transactions to get back to the proper cost basis values.  (This is most likely to be an issue if there are multiple lots of XLF held.)

HTH

cegarbage

I spent last night putting in a corporate spin off and put in the old security, new security, along with shares that popped in my etrade account, and with the cost per old share and cost per new share. And i checked it was a taxable spin off (not sure that was correct).  

Up until yesterday, quicken had told me i had a new security last week, but didn't drop any shares in. Finally, today, quicken popped up and told me i had purchased 76 shares.

So, I deleted my corporate spin off I created, then used  the download that says I purchased 76 shares.

I don't import my data into turbotax, so if it isn't offically correct, it's good enough for me. My quicken ties to what etrade says and I'm good. Thanks for the help.

Unknown

Based solely on the information in the OP's link, this does not appear to fall within Quicken's (and the real world's) definition of a corporate spinoff.  From the link:

The distribution for the special dividend is 0.139146 shares of XLRE or $4.44356 per share of XLF as of September 16, 2016. The dividend distribution will be characterized as both return of capital and income for tax purposes. As of September 16, 2016, the approximate percentage of the dividend that will be treated as return of capital is 74%, and the remaining 26% will be taxed as ordinary income. The amounts and sources of distributions reported are estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund's investment experience during the remainder of its fiscal year and may be subject to changes based on the tax regulations. U.S. Shareholders will receive a form 1099-DIV in early 2017 that will inform them how to report distributions for federal income tax purposes.

This says to me that: 

• XLF is effectively paying out $4.44356/share to its shareholders
• about 74% of that value is a return of capital (non-taxable)
• about 26% is taxable dividend income to the shareholder
• these percentages are subject to change and the shareholder will not know the final values until 1099 information is distributed in early 2017.
• the form of this payout is 0.139146 shares of XLRE.

If that interpretation is correct (and I am not a tax or financial pro), then in Quicken (for Windows) I would be heading a couple of directions.

1. Backup the datafile.
2. Generate a RtrnCap for $3.288 / share (74% of 4.44356) putting cash into your account
3. Generate a Div transaction for $1.115 / share (26% of 4.44356) putting more cash into your account
4. Generate a Buy Shares of XLRE buying up the proper number of shares (0.139146 times as many shares as you have of XLF) for the total cash just generated.  
5. If you come away with an integer number of XLRE shares, then you would be selling the fractional share for what your brokerage should be reporting to you as 'cash-in-lieu'.  

Following that series of transactions, I would be reviewing the cost basis for the XLF shares.  If there is any reason to question the values Quicken shows, I would do Remove Shares and Add Shares transactions to get back to the proper cost basis values.  (This is most likely to be an issue if there are multiple lots of XLF held.)

HTH

I maybe confused here. Based on your assumptions above. I assume the cost basis of my XLF original shares remain constant (what I originally paid for the shares) and the cost basis of the XLRE would be $1.155/share. Can you confirm this?

q_lurker

Based solely on the information in the OP's link, this does not appear to fall within Quicken's (and the real world's) definition of a corporate spinoff.  From the link:

The distribution for the special dividend is 0.139146 shares of XLRE or $4.44356 per share of XLF as of September 16, 2016. The dividend distribution will be characterized as both return of capital and income for tax purposes. As of September 16, 2016, the approximate percentage of the dividend that will be treated as return of capital is 74%, and the remaining 26% will be taxed as ordinary income. The amounts and sources of distributions reported are estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund's investment experience during the remainder of its fiscal year and may be subject to changes based on the tax regulations. U.S. Shareholders will receive a form 1099-DIV in early 2017 that will inform them how to report distributions for federal income tax purposes.

This says to me that: 

• XLF is effectively paying out $4.44356/share to its shareholders
• about 74% of that value is a return of capital (non-taxable)
• about 26% is taxable dividend income to the shareholder
• these percentages are subject to change and the shareholder will not know the final values until 1099 information is distributed in early 2017.
• the form of this payout is 0.139146 shares of XLRE.

If that interpretation is correct (and I am not a tax or financial pro), then in Quicken (for Windows) I would be heading a couple of directions.

1. Backup the datafile.
2. Generate a RtrnCap for $3.288 / share (74% of 4.44356) putting cash into your account
3. Generate a Div transaction for $1.115 / share (26% of 4.44356) putting more cash into your account
4. Generate a Buy Shares of XLRE buying up the proper number of shares (0.139146 times as many shares as you have of XLF) for the total cash just generated.  
5. If you come away with an integer number of XLRE shares, then you would be selling the fractional share for what your brokerage should be reporting to you as 'cash-in-lieu'.  

Following that series of transactions, I would be reviewing the cost basis for the XLF shares.  If there is any reason to question the values Quicken shows, I would do Remove Shares and Add Shares transactions to get back to the proper cost basis values.  (This is most likely to be an issue if there are multiple lots of XLF held.)

HTH

the cost basis of the XLRE would be $1.155/share. Can you confirm this?

No.  Through the return of capital and the dividend, you are getting $4.44356 cash per XLF share.  That is buying 0.139146 shares of XLRE per share of XLF held.  That means your basis in XLRE becomes $4.44356 / 0.139146 = $31.935 / share of XLRE which is the area it is currently trading in.  

Unknown

I spent last night putting in a corporate spin off and put in the old security, new security, along with shares that popped in my etrade account, and with the cost per old share and cost per new share. And i checked it was a taxable spin off (not sure that was correct).  

Up until yesterday, quicken had told me i had a new security last week, but didn't drop any shares in. Finally, today, quicken popped up and told me i had purchased 76 shares.

So, I deleted my corporate spin off I created, then used  the download that says I purchased 76 shares.

I don't import my data into turbotax, so if it isn't offically correct, it's good enough for me. My quicken ties to what etrade says and I'm good. Thanks for the help.

This also looks more like my TD Ameritrade statement. What prices did you use for the cost per old share of XLF and the cost per new share?

Unknown

Based solely on the information in the OP's link, this does not appear to fall within Quicken's (and the real world's) definition of a corporate spinoff.  From the link:

The distribution for the special dividend is 0.139146 shares of XLRE or $4.44356 per share of XLF as of September 16, 2016. The dividend distribution will be characterized as both return of capital and income for tax purposes. As of September 16, 2016, the approximate percentage of the dividend that will be treated as return of capital is 74%, and the remaining 26% will be taxed as ordinary income. The amounts and sources of distributions reported are estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund's investment experience during the remainder of its fiscal year and may be subject to changes based on the tax regulations. U.S. Shareholders will receive a form 1099-DIV in early 2017 that will inform them how to report distributions for federal income tax purposes.

This says to me that: 

• XLF is effectively paying out $4.44356/share to its shareholders
• about 74% of that value is a return of capital (non-taxable)
• about 26% is taxable dividend income to the shareholder
• these percentages are subject to change and the shareholder will not know the final values until 1099 information is distributed in early 2017.
• the form of this payout is 0.139146 shares of XLRE.

If that interpretation is correct (and I am not a tax or financial pro), then in Quicken (for Windows) I would be heading a couple of directions.

1. Backup the datafile.
2. Generate a RtrnCap for $3.288 / share (74% of 4.44356) putting cash into your account
3. Generate a Div transaction for $1.115 / share (26% of 4.44356) putting more cash into your account
4. Generate a Buy Shares of XLRE buying up the proper number of shares (0.139146 times as many shares as you have of XLF) for the total cash just generated.  
5. If you come away with an integer number of XLRE shares, then you would be selling the fractional share for what your brokerage should be reporting to you as 'cash-in-lieu'.  

Following that series of transactions, I would be reviewing the cost basis for the XLF shares.  If there is any reason to question the values Quicken shows, I would do Remove Shares and Add Shares transactions to get back to the proper cost basis values.  (This is most likely to be an issue if there are multiple lots of XLF held.)

HTH

Cash transactions 2 & 3 would probably have to be adjusted later for tax purposes later to match 1099s issued in early 2017 by your broker. (Also, I calculated the taxable dividend should be based on $1.155/share, not $1.115/share.)

q_lurker

Based solely on the information in the OP's link, this does not appear to fall within Quicken's (and the real world's) definition of a corporate spinoff.  From the link:

The distribution for the special dividend is 0.139146 shares of XLRE or $4.44356 per share of XLF as of September 16, 2016. The dividend distribution will be characterized as both return of capital and income for tax purposes. As of September 16, 2016, the approximate percentage of the dividend that will be treated as return of capital is 74%, and the remaining 26% will be taxed as ordinary income. The amounts and sources of distributions reported are estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund's investment experience during the remainder of its fiscal year and may be subject to changes based on the tax regulations. U.S. Shareholders will receive a form 1099-DIV in early 2017 that will inform them how to report distributions for federal income tax purposes.

This says to me that: 

• XLF is effectively paying out $4.44356/share to its shareholders
• about 74% of that value is a return of capital (non-taxable)
• about 26% is taxable dividend income to the shareholder
• these percentages are subject to change and the shareholder will not know the final values until 1099 information is distributed in early 2017.
• the form of this payout is 0.139146 shares of XLRE.

If that interpretation is correct (and I am not a tax or financial pro), then in Quicken (for Windows) I would be heading a couple of directions.

1. Backup the datafile.
2. Generate a RtrnCap for $3.288 / share (74% of 4.44356) putting cash into your account
3. Generate a Div transaction for $1.115 / share (26% of 4.44356) putting more cash into your account
4. Generate a Buy Shares of XLRE buying up the proper number of shares (0.139146 times as many shares as you have of XLF) for the total cash just generated.  
5. If you come away with an integer number of XLRE shares, then you would be selling the fractional share for what your brokerage should be reporting to you as 'cash-in-lieu'.  

Following that series of transactions, I would be reviewing the cost basis for the XLF shares.  If there is any reason to question the values Quicken shows, I would do Remove Shares and Add Shares transactions to get back to the proper cost basis values.  (This is most likely to be an issue if there are multiple lots of XLF held.)

HTH

Agree on the possible adjustment needed for 1099 data. Depends on how accurately user expects Quicken data to match real world.


Also agree on the typo. 1.155 is correct, not the 1.115 I typed.