How to enter an exchange of shares between companies

Meebs
Meebs Quicken Windows Subscription Member ✭✭
I had 100 shares of company "A" at a cost of $944.  Company "A" was taken over by Company "B" and there was an exchange of stock.  I received 32 shares of Company B totaling $1074.  How to enter this exchange in Q2019 as there is no action for "exchange"??  Tx

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  • NotACPA
    NotACPA Quicken Windows Subscription SuperUser ✭✭✭✭✭
    edited May 2019
    Try "Corporate Acquisition (stock for stock)"  Company B acquired your 100 shs of Company A for 32 shs of B.
    Where did the $1074 come into play?  Is that the new value (NOT Cost Basis) of the shares?  Because your Cost Basis is still $944

    Q user since February, 1990. DOS Version 4
    Now running Quicken Windows Subscription, Business & Personal
    Retired "Certified Information Systems Auditor" & Bank Audit VP

  • Tom Young
    Tom Young Quicken Windows Subscription SuperUser ✭✭✭✭✭
    An "exchange of shares" is more or less a meaningless description of a transaction.  While it's probably most common that transactions of this sort are not taxable events and result in nothing more than your old basis carrying over to the new shares, these events can also be fully taxable and properly reported as a sale with a resulting gain or loss.  You have to understand exactly how the deal was structured in order to make a proper accounting of the transaction.
    So "company A", "company B" questions simply can't be answered conclusively.  What are the names of the companies involved?
  • Meebs
    Meebs Quicken Windows Subscription Member ✭✭
    Thank you for your response.  I tried a simple question but since you asked for details, here they are: (-_-)

    A= Goldcorp Inc  (GG)
    B=Newmont GoldCorp Corp (NEM)

    From my brokers statement:
    4/19 GG Exchange -100  2.00 
    4/19 Newmont GoldCorp Corp  Exchange 32.00

    From the Realized Gain/Loss statement
    GG  Qty 100,  Acq Cost $944, Liquidation Amt $1102.28  STG= $158.20

    From my current account's
    NEM 32, Unit cost 33.55, Cost basis 1073.44

    From Newmont Website information
    Newmont will pay 0.3280 of its own shares for each Goldcorp share, a premium of 17 percent to the weighted average share price from the last 20 days. Newmont also plans to pay 2 cents for each Goldcorp share. 

    The 0.02 cents/share was a deposit of $2.00 which I classified as Dividend??

    I do a daily D/L in Quicken from this broker, It was a a variation of the data presented above and that is when I tried to understand it and therefore the question. Looking forward to 2019 tax return and how this will be entered.  Appreciate your time.  Tx  Mike

  • NotACPA
    NotACPA Quicken Windows Subscription SuperUser ✭✭✭✭✭
    edited May 2019
    What this "GG  Qty 100,  Acq Cost $944, Liquidation Amt $1102.28  STG= $158.20" seems to be saying is that this is NOT a tax-free action.
    SO, sell 100 shs of GG and BUY 32 shs of Newmont.
    And, yes, there's also a $2 dividend.

    Q user since February, 1990. DOS Version 4
    Now running Quicken Windows Subscription, Business & Personal
    Retired "Certified Information Systems Auditor" & Bank Audit VP

  • Meebs
    Meebs Quicken Windows Subscription Member ✭✭
    Gentlemen, thank you very much for helping me to understand this transaction.  Will be copying these responses and storing them in my 2019 tax folder.  (-_-)  Mike
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