Cash in lieu of fractional shares

Dustin Creighton Davis

I sold all my XLF etf shares on 7/26/2018.
Quantity 175
28.155 per share
Net Amount 4927.13

I received Cash in lieu of fractional shares on 7/30/2018.
Quantity -0.763
Net amount 21.48

How should I enter this transaction in quicken?

q_lurker

Dustin Creighton Davis said:

I originally purchased 175 shares of XLF, I then received an additional 0.763 shares at a certain price when a dividend was distributed. So they still had 0.763 shares of mine on the books.  How would I enter this into quicken

That sounds like an odd distribution by XLF.  

More commonly would be a dividend reinvestment where the cash dividend you were due would instead be turned into additional shares.  What I think happened:

• You bought 175 shares 
• On June 20, 2018, XLF paid a dividend of $0.118967/share which for you would have been worth $20.82.
• That dividend was reinvested as additional shares of XLF at the June 20 closing price of $27.28/share.  The $20.82 at $27.28/share bought your 0.763 shares.
• You sold the 175 shares on July 26.  Since your total holding was now below a threshold (1 share?) they sold off your 0.763 shares on July 30.

If all that is correct, in Quicken you would have entered
for June 20 a ReinvDiv transaction for $20.82 and 0.763 shares.
for July 26 a Sell Shares of 175 shares for the $4,927.13
for July 30 a Sell Shares for 0.763 shares for $21.48.

Tom Young

Do you know why you received the CIL?  It looks like you sold only whole shares so it's not clear why you'd receive a CIL. 

Brokers might actually report a sale of one security as several different sales - X number of shares at one price, Y number of shares at another price, with X + Y equaling the number of shares sold - and I suppose X and Y could have the shares expressed with numbers to the right of the decimal point, but I'd still expect X+Y to come back to the whole number of shares sold.

A CIL transaction is almost always associated with some sort of "corporate action" like a split, a merger and so forth.  Typically in these corporate actions fractional shares aren't issued so Cash in Lieu is deposited into your account instead.  The CIL represents the proceeds from that sale of a fractional share.

q_lurker

On what basis was a cash-in-lieu (CIL) distributed?  CIL is usually associated with spinoffs or mergers where the recipient is due some fractional shares because of a specified share ratio, but instead of receiving that fractional share, they instead receive cash (eg. cash instead of the fractional share).  

So why would you have been due a fractional share if you simply sold all your XLF holding?

Dustin Creighton Davis

I originally purchased 175 shares of XLF, I then received an additional 0.763 shares at a certain price when a dividend was distributed. So they still had 0.763 shares of mine on the books.  How would I enter this into quicken

Scooterlam

In the past, I have entered fractional shares as a second sell transaction in Quicken.   Then, at tax time, I compared the transactions in Quicken to the 1099B received.   In my case, the financial institution, in the 1099B, reported the main and fractional share sales separately along with their respective cost basis.   This transaction was in a taxable account.

Given you sold XLF back in July and you may likely have a 1099B in hand by now. How did the FI record the sale?   Maybe a clue as to how to record it in Quicken?

Hope this helps,

Scott

2019 QW HBR

q_lurker

Dustin Creighton Davis said:

I originally purchased 175 shares of XLF, I then received an additional 0.763 shares at a certain price when a dividend was distributed. So they still had 0.763 shares of mine on the books.  How would I enter this into quicken

That sounds like an odd distribution by XLF.  

More commonly would be a dividend reinvestment where the cash dividend you were due would instead be turned into additional shares.  What I think happened:

• You bought 175 shares 
• On June 20, 2018, XLF paid a dividend of $0.118967/share which for you would have been worth $20.82.
• That dividend was reinvested as additional shares of XLF at the June 20 closing price of $27.28/share.  The $20.82 at $27.28/share bought your 0.763 shares.
• You sold the 175 shares on July 26.  Since your total holding was now below a threshold (1 share?) they sold off your 0.763 shares on July 30.

If all that is correct, in Quicken you would have entered
for June 20 a ReinvDiv transaction for $20.82 and 0.763 shares.
for July 26 a Sell Shares of 175 shares for the $4,927.13
for July 30 a Sell Shares for 0.763 shares for $21.48.