How can I correct my spinoff entries?

Randeo

In the past, with spin-offs, I just added shares of the new company and did not know about the CORPORATE SECURITIES SPINOFF OPTION. Using the ADD SHARES option gave the new company a basis of zero and left the old company basis unchanged, which is incorrect.

How can I go back and correct? Is the only option to delete all transactions for the spin off security, delete the security itself, then redo the entry using the Corporate Securities Spinoff Option?
The specific spin-off I'm working on is the DowDuPont spinoff of Dow Holdings which gave me 1 share of Dow for each share of DowDuPont.

Thanks

Sherlock

Save a backup (press Ctrl + B).

You should be able to delete the Added action transactions you entered and use the Corporate Securities Spin-Off wizard.  You should not need to delete the security or all the subsequent transactions. 

Sherlock

Randeo said:

Correction to my question: I should have said I received 1 Dow Holdings share for each 3 shares of 'DowDupont'. Under "New Shares Issued" Per Old Share, is that entered as 0.33333334 ?

No. You should enter: .333333333333 which Quicken will truncate to 0.333333

After you've completed the wizard, you should review the transactions and replace the temporary new security used in the Added action transaction with the original DowDupont security you used in the subsequent transactions.

Sherlock

Save a backup (press Ctrl + B).

You should be able to delete the Added action transactions you entered and use the Corporate Securities Spin-Off wizard.  You should not need to delete the security or all the subsequent transactions. 

Randeo

Correction to my question: I should have said I received 1 Dow Holdings share for each 3 shares of 'DowDupont'. Under "New Shares Issued" Per Old Share, is that entered as 0.33333334 ?

Sherlock

Randeo said:

Correction to my question: I should have said I received 1 Dow Holdings share for each 3 shares of 'DowDupont'. Under "New Shares Issued" Per Old Share, is that entered as 0.33333334 ?

No. You should enter: .333333333333 which Quicken will truncate to 0.333333

After you've completed the wizard, you should review the transactions and replace the temporary new security used in the Added action transaction with the original DowDupont security you used in the subsequent transactions.

q_lurker

See this discussion as a start:
https://community.quicken.com/discussion/7854534/dowdupont-corteva-spin-off-will-consist-of-3-transactions-spin-off-corporate-name-change-and-a-re#latest

If you simply managed the reverse split portion and the name change as a Remove Shares and Add Shares, you should be able to edit your Add Shares to reflect the correct cost basis.  That correct cost basis would be after the tandem Corteva spinoff was accounted for. 

I have not fully reviewed that prior discussion, but your approach might have in Quicken

1. Remove All Shares of DWDP (Dow DuPont)
2. Add Shares Corteva
3. Sell fractional shares of Corteva for Cash in lieu if applicable
4. Add Shares DD (DuPont)  
5. Sell fractional shares of DD for cash-in-lieu if applicable

Edit the step 4 transaction(s) to reflect the proper cost basis and acquisition dates.

YingDave

@Randeo

Having been through the same transaction (used to work for Dow), and somewhat in line with what @q_lurker is outlining but it depends on your starting point. The only complicated thing in this transaction is that Dow shares were first merged into DowDupont (sounds like you did that part?) then later a faction was spun off back out to Dow shares. So they reused the old ticker but it actually represents a different entity. So Dow -> DWDP, then DWDP -> Dow & DWDP -> Corteva. Take a back up file first! 

 1. 'Corporate Name Change' Dow to DowDupont if you did not already do this, copy all historical prices across to the new tick symbol and delete ticker 'Dow' - need to do this otherwise you will loose the history in next step?
2 Run Corporate Securities Spin off to take capital DWDP to Dow Shares on 31Mar2019 (yes it is confusing because you have to reuse the old ticker.
3. Run Corporate Securities spin off to take capital DWDP - > Corteva CVTA on 31May2019.
4. 'Corporate Name Change' DowDupont (DWDP) back to DuPont (DD)

You can do each one of these steps above as mutliple transactions  @q_lurker mentioned, but better using the in-built dialog for it

DuPont also did a stock split somewhere in the mix also with is another transaction in the drop down list.

After you have done those - go back and delete the transactions you historically used to Add Dow back and Corteva with zero cost base, simply by highlighting them in the register and deleting (make sure you double check before deleting!) Then you cost base should come back to correct.

Obviously you have to clean these up before you can enter yet another Corporate spin off for IFF. 

joneisenberg

This subject is under Q for Windows, however just a note for other unsuspecting users that this function is not yet available in Q for Mac.