quicken corporate spin off "security name already in use

Unknown

I am trying to spin off MTS to BCE and I get the following error "quicken corporate spin off security name already in use". I already own shares of BCE so the security name is in use.

How do I  get around this problem?

Thanks for any help

q_lurker

What I am seeing independently is the BCE is acquiring MTS.  That would be a Corporate Acquisition transaction in Quicken rather than a corporate spinoff.  

q_lurker

q.lurker said:

What I am seeing independently is the BCE is acquiring MTS.  That would be a Corporate Acquisition transaction in Quicken rather than a corporate spinoff.  

Or a Sell Shares transaction if the cash option was selected.
http://www.newswire.ca/news-releases/bce-completes-acquisition-of-manitoba-telecom-services-bell-mts...

Unknown

For each share of MTS It was $20.3977 in cash and 0.3311 of a BCE common share

ie For 100 shares of MTS $2039.77 in cash
33 shares of BCE @58.75 per share = $1945.21

Will Corporate Acquisition works as it isn't share for share

q_lurker

Don said:

For each share of MTS It was $20.3977 in cash and 0.3311 of a BCE common share

ie For 100 shares of MTS $2039.77 in cash
33 shares of BCE @58.75 per share = $1945.21

Will Corporate Acquisition works as it isn't share for share

No.  The Corporate acquisition will not work for a cash-to-boot merger.  For that, you need to determine the tax consequences of the deal, and then (often) enter a series of Sell Shares, buy shares and perhaps remove shares and add shares.  I am not qualified to comment on how these types of deals are handled within the Canadian tax structure.  If you can establish your tax situation or status with respet to this deal (taxable gains, new tax cost basis, etc.) then someone might be able to concoct with you a viable strategy in Quicken/Canada.  

Unknown

Don said:

For each share of MTS It was $20.3977 in cash and 0.3311 of a BCE common share

ie For 100 shares of MTS $2039.77 in cash
33 shares of BCE @58.75 per share = $1945.21

Will Corporate Acquisition works as it isn't share for share

The cash portion of the take over is easy as it is a normal sell where capital gains applies.

This leave a balance of MTS shares that need to be exchanged for a lesser number of BCE without incurring a sell (capital gain) and entered so that the original 'cost basis' is maintained.
Would this work?
Sell MTS at original 'cost basis' (no capital gain). Then use the total funds from the sell to buy the correct number of  BCE that has already been purchased in the merger. 

total funds from MTS sell / BCE share bought = correct cost basis for acquired BCE shares

Thanks for your help!

q_lurker

Don said:

For each share of MTS It was $20.3977 in cash and 0.3311 of a BCE common share

ie For 100 shares of MTS $2039.77 in cash
33 shares of BCE @58.75 per share = $1945.21

Will Corporate Acquisition works as it isn't share for share

I would be thinking along these lines:

If the cash recieved is 100% considered capital gains, then sell all MTS shares for original basis plus cash recieved. That should net the proper capital gains.

Then buy the requisite number of BCE shares for the original cost basis of the entire MTS holding.

Are there any issues or questions with respect to the acquisition date of the new BCE shares. As currently outlined, they would be treated in Quicken as acquired now with the buy transactions. In some similar US transactions, the newly acquired shares can be treated as acquired when the original (MTS) shares had been acquired. In such cases, I follow along with removing shares then adding shares to correct for the acquisition date.

Unknown

Don said:

For each share of MTS It was $20.3977 in cash and 0.3311 of a BCE common share

ie For 100 shares of MTS $2039.77 in cash
33 shares of BCE @58.75 per share = $1945.21

Will Corporate Acquisition works as it isn't share for share

Thanks, will backup Quicken and do a trial run and see how it goes.