GE - WAB spinoff with cash for partial share

q_lurker

Roger Park said:

q_Lurker,

I own 1,696.5214 shares of GE stock and received $8.20 Cash In Lieu from Webtec.  I still have not entered the transaction into Quicken.  Thanks for your help.

Roger

@Roger Park
As I now see it:
1696.5214 GE shares x 0.005371 = 9.112 WAB shares
9.112 WAB shares @ 78.06 = $711.28

Quicken Transactions

• 02/26/19 Div from GE for $711.28
• 02/26/19 Buy 9.112 shares WAB for 711.28 (~78.06/share)
• 02/26/19 (or a later date if you received cash-in-lieu later) Sell 0.112 shares WAB for $8.20 (~73.214/sh).  FWIW: That sell transaction will generate a ST cap loss for you of about $0.54.  

Use the total $ amounts for the buy and sell, not the per share amounts.

I think that should do it.

Geobrick

I think the consensus of a cash dividend from GE used to buy shares of WABTEC makes sense but E*Trade never shows a dividend transaction just a buy of WABTEC (with no money used in the transaction). I suppose I'll need to wait for the end of year 1099 to see if there was a taxable cash dividend. Until then, I'm recording it as Shares added on 2/26/19 with a basis of $73.96.
I suppose the fact that GE investor relations told @ShaneBacon the dividend amount of 78.06 is to be used for the WABTEC basis means there is a cash value that should be taxed as if it were a dividend (otherwise the basis of WABTEC would be $0).