how to enter BIVV spin off from BIIB

reginaO

investing- How do I enter BIIB spining off BIVV
Quicken for WIN 2016

q_lurker

It appears to be a "standard" spinoff - You get one share of BIVV for every two shares of BIIB you had held.  No change to BIIB share counts.  You need to allocate part of your original BIIB cost basis to your new BIVV holding based on the fair market values of BIIB and BIVV immediately after the spinoff.  You (reginaO) have been through this type of process before.  

On 2/2/17, BIIB opened at 263.76 and BIVV opened at 44.79.  Since you had 1/2 as many shares of BIVV, that leads to about 92.2% of the basis staying with BIIB and about 7.8% moving to the BIVV holding.  [ 263.76 / (263.76 + 44.79 / 2) = 92.17% ]

Since I do not like the built in Stock Spinoff wizard in Quicken, I would be entering a Remove Shares for the BIIB holding followed by a series of Add Shares for both the BIIB (at reduced basis) and the BIVV (at their basis). The Add Shares would be for each lot of BIIB originally held reflecting the proper basis and acquisition dates.

If that left a residual fractional share of BIVV, that fractional share would be sold for a cash-in-lieu amount you received.  

You, your broker, or BIIB and BIVV may use different specific fair market values but the net result should still be in the 92% / 8% range.  

reginaO

thank you.  I will have to wait to see how Schwab allocates the cost,

reginaO

reginaO said:

thank you.  I will have to wait to see how Schwab allocates the cost,

Form 8937 available for BIIB, BIVV

q_lurker

reginaO said:

thank you.  I will have to wait to see how Schwab allocates the cost,

Form 8937

So they used $262.856 and $44.2557 leading to ratios of 92.24% and 7.76%; effectively the same as I conjured up.  So you can use those ratios to allocate original lot basis to two Add Shares transactions for each lot.  

Remove Shares BIIB
(lot 1)
Add Shares BIIB
Add Shares BIVV
(lot 2)
Add Shares BIIB
Add Shares BIVV
(and so on)

reginaO

reginaO said:

thank you.  I will have to wait to see how Schwab allocates the cost,

thank you,  will test in the Q test acct