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

wdnkl

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.

q_lurker

The terms of the splitup seem to be that partners received 1share of BIPC for every 9 units held of the partnership.  If you had 100 units of the partnership, you would have been due 11.1111 shares of BIPC.  You need to treat his in Quicken as if you received the 11.1111 shares and then sold the 0.1111 shares for the $3.81.  (Be as precise as you choose the the 0.1111 fraction; just be sure to sell the entire fraction.)  

NotACPA

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_lurker

The terms of the splitup seem to be that partners received 1share of BIPC for every 9 units held of the partnership.  If you had 100 units of the partnership, you would have been due 11.1111 shares of BIPC.  You need to treat his in Quicken as if you received the 11.1111 shares and then sold the 0.1111 shares for the $3.81.  (Be as precise as you choose the the 0.1111 fraction; just be sure to sell the entire fraction.)  

wdnkl

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