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How do I record a "cash in lieu of fractional share received"?

Stock spin-off received 11 shares of Brookfield Infrastructure (BIPC) from Brookfield Infrastructure (BIP) with $3.81 cash in lieu of fractional share. I know how to do the spin-off, but not the "cash in lieu of". I don't see a transaction in the transaction list for that.

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Answers

  • NotACPA
    NotACPA SuperUser, Windows Beta Beta
    The spin-off resulted in full and fractional shares.  The fractional share was sold, on your behalf, for $3.81.
    SO, all that you need to do is to record the sale of the fractional share.
    You'll probably need to contact your broker to find out what that fraction was.
    Q user since DOS version 5
    Now running Quicken Windows Subscription,  Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • wdnkl
    wdnkl Member ✭✭
    OMG! @q_lurker....you are right on! I have been trying to get this right for 2 days! I originally did the spin-off as receiving .11 shares at the prices of the spin-off on 3/31/20 which totaled to receiving 11 shares of BICP (new company). So I went ahead and sold the .11 shares, but that didn't work, bec it sold a 1 whole share therefore decreasing shares owned in my portfolio to 10 shares instead of 11 of BICP. I can't tell you how frustrated I was...I was getting ready to cry!!! Then you suggested the to purchase 11.1111 shares and sell .1111. BINGO! It worked! So I went back to do the spin-off again as .111111 shares received of BICP which showed in my portfolio as now owning 11.1111 shares of BICP. I then sold the .1111 shares which added the $3.81 to my cash total and it matched my statement. I am explaining what I did in case anyone in the future has this problem because at first it didn't "click" in my brain. I am so impressed with your knowledge which also helped me with the UTX-OTIS-CARR-RTX spin-off. THANK YOU for lurking :)
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