ESPP Conversion

Dave Davis

The company I have ESPP shares was sold. The company shares were converted to the new company (i.e. for each share of the original company I get .45 shares in the new one). I also have some non ESPP shares. During an One Step Update the transfer came in as selling all of the old shares (ALL are identified as ESPP shares, even the ones entered as a regular purchase) for $0 and buying the new ones at $0.

Is there a way to automate the conversion? I know I can manually change all the ESPP purchases, but I would like to track the history.

Sherlock

I suggest deleting the downloaded transactions, creating a ESPP security for the new company, and using a Corporate Acquisition.  Before making any significant changes to your data file, always save a backup (press Ctrl + B).

mshiggins

I would want to know the tax treatment specified in the terms of the merger agreement before deciding whether to use Sell ESPP followed by Buy ESPP or the corporate acquisition approach Sherlock recommended.


Edit: also how many open lots of your ESPP do you currently have? And if you mention the specific companies involved, more detailed instructions with the exact figures to enter in Quicken.

Dave Davis

Thanks for the replies.

Sherlock

How do I create a ESPP security? The only way I know of is to actually make a ESPP purchase of a security. I don't work for them any more and there hasn't been an ESPP purchase of the new company.. A corporate acquisition of the regular shares aren't a problem, but ESPP shares are not in the list to chose from to be converted.


mshiggins
There are no tax consequences, just .45 shares of the new for every one of the old, the total cost basis doesn't change, just the cost basis per share. 

There are 11 open lots of ESPP shares and two of regular shares. The old is Engility and new is SAIC. I can do a conversion manually (I already have) and go into each ESPP purchase and change it to what a SAIC purchase would have been, but as I said I would like to have a record of the original purchases..

Sherlock

Dave Davis said:

Thanks for the replies.

Sherlock

How do I create a ESPP security? The only way I know of is to actually make a ESPP purchase of a security. I don't work for them any more and there hasn't been an ESPP purchase of the new company.. A corporate acquisition of the regular shares aren't a problem, but ESPP shares are not in the list to chose from to be converted.


mshiggins
There are no tax consequences, just .45 shares of the new for every one of the old, the total cost basis doesn't change, just the cost basis per share. 

There are 11 open lots of ESPP shares and two of regular shares. The old is Engility and new is SAIC. I can do a conversion manually (I already have) and go into each ESPP purchase and change it to what a SAIC purchase would have been, but as I said I would like to have a record of the original purchases..

To create an ESPP security,  press Ctrl + Y, select Add Security, Click Here, enter the symbol (SAIC) and a unique name (SAIC ESPP), and select ESPP from the Security type: pull-down menu, Next, select an appropriate investment account, identify the tracking security (SAIC), select Next, choose No, ..., select Next, enter 0 price per share, today's date for the offering and ending dates, 0 for the price at the offering and ending date, select Next, enter 0 for Price / Share and Price / Share at Grant Dates, select Done, open the appropriate investment account, right click on the Added transaction for the new ESPP security and select Delete and Yes.

Dave Davis

Dave Davis said:

Thanks for the replies.

Sherlock

How do I create a ESPP security? The only way I know of is to actually make a ESPP purchase of a security. I don't work for them any more and there hasn't been an ESPP purchase of the new company.. A corporate acquisition of the regular shares aren't a problem, but ESPP shares are not in the list to chose from to be converted.


mshiggins
There are no tax consequences, just .45 shares of the new for every one of the old, the total cost basis doesn't change, just the cost basis per share. 

There are 11 open lots of ESPP shares and two of regular shares. The old is Engility and new is SAIC. I can do a conversion manually (I already have) and go into each ESPP purchase and change it to what a SAIC purchase would have been, but as I said I would like to have a record of the original purchases..

Thanks. I was able to create the ESPP security, but when I used the acquisition transaction, the ESPP securities weren't available, only the regular ones. 

Sherlock

Dave Davis said:

Thanks for the replies.

Sherlock

How do I create a ESPP security? The only way I know of is to actually make a ESPP purchase of a security. I don't work for them any more and there hasn't been an ESPP purchase of the new company.. A corporate acquisition of the regular shares aren't a problem, but ESPP shares are not in the list to chose from to be converted.


mshiggins
There are no tax consequences, just .45 shares of the new for every one of the old, the total cost basis doesn't change, just the cost basis per share. 

There are 11 open lots of ESPP shares and two of regular shares. The old is Engility and new is SAIC. I can do a conversion manually (I already have) and go into each ESPP purchase and change it to what a SAIC purchase would have been, but as I said I would like to have a record of the original purchases..

You're correct.  As Quicken isn't supporting the ESPP shares in the corporate acquisition wizard, you will need to enter the new ESPP Added transactions manually and enter the Removed transactions for the original ESPP shares.

Dave Davis

Dave Davis said:

Thanks for the replies.

Sherlock

How do I create a ESPP security? The only way I know of is to actually make a ESPP purchase of a security. I don't work for them any more and there hasn't been an ESPP purchase of the new company.. A corporate acquisition of the regular shares aren't a problem, but ESPP shares are not in the list to chose from to be converted.


mshiggins
There are no tax consequences, just .45 shares of the new for every one of the old, the total cost basis doesn't change, just the cost basis per share. 

There are 11 open lots of ESPP shares and two of regular shares. The old is Engility and new is SAIC. I can do a conversion manually (I already have) and go into each ESPP purchase and change it to what a SAIC purchase would have been, but as I said I would like to have a record of the original purchases..

It appears that Remove transaction isn't available for ESPP shares either. It looks like I'm going to have to just modify the original purchase (or delete the original and enter a new one with the conversion values since editing doesn't let you modify the security).

Sherlock

Dave Davis said:

Thanks for the replies.

Sherlock

How do I create a ESPP security? The only way I know of is to actually make a ESPP purchase of a security. I don't work for them any more and there hasn't been an ESPP purchase of the new company.. A corporate acquisition of the regular shares aren't a problem, but ESPP shares are not in the list to chose from to be converted.


mshiggins
There are no tax consequences, just .45 shares of the new for every one of the old, the total cost basis doesn't change, just the cost basis per share. 

There are 11 open lots of ESPP shares and two of regular shares. The old is Engility and new is SAIC. I can do a conversion manually (I already have) and go into each ESPP purchase and change it to what a SAIC purchase would have been, but as I said I would like to have a record of the original purchases..

To enter the Removed transaction, use Sold ESPP Shares and choose No, withdraw the shares without affecting any cash balance... when prompted by the wizard.

Dave Davis

Dave Davis said:

Thanks for the replies.

Sherlock

How do I create a ESPP security? The only way I know of is to actually make a ESPP purchase of a security. I don't work for them any more and there hasn't been an ESPP purchase of the new company.. A corporate acquisition of the regular shares aren't a problem, but ESPP shares are not in the list to chose from to be converted.


mshiggins
There are no tax consequences, just .45 shares of the new for every one of the old, the total cost basis doesn't change, just the cost basis per share. 

There are 11 open lots of ESPP shares and two of regular shares. The old is Engility and new is SAIC. I can do a conversion manually (I already have) and go into each ESPP purchase and change it to what a SAIC purchase would have been, but as I said I would like to have a record of the original purchases..

Thanks for the help and being so patient