How to adjust cost basis in Quicken for AT&T & WBD post-spinoff (in detail)?

I know there are a couple of discussions already about this, including the main discussion in which @q_lurker recently explained what dollar values are supposed to be input into the “Corporate Spinoff” window to record the spinoff & get the correct cost basis for each of the 2 companies.

I posted the following question in that discussion, but since I’m not sure how that works regarding receiving an answer (since there are a LOT of comments in that discussion), I’m posting here as well since I desperately need help:

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A question for @q_lurker about filling in the “Corporate Spinoff” window with the dollar amounts of the Fair Market Values for each of AT&T and WBD immediately after the spinoff: I’ve gone through spinoffs in Quicken, previously, so I understand the definition of what values are supposed to be input. However, what ARE those two dollar values for this spinoff?

I’d like the cost basis of each of AT&T and WBD, after going through the Corporate Spinoff window, to at least be VERY close to what my brokerage firm shows in each of my accounts. I know, from previous experience, that the cost basis per lot in Quicken isn’t always exactly the same as the brokerage’s info, but in the past I’ve had the TOTAL cost basis for each of the 2 positions match what my brokerage firm showed.

Aside from knowing the exact ratio of WBD shares received — 0.241917 — for each share of AT&T, the only other info my brokerage firm was able to give me about how THEY allocated the cost basis was that, of my pre-spinoff cost basis in AT&T, 23.3942348 % went to WBD and thus the remainder — 76.6057652 % — is the adjusted (post-spinoff) cost basis of AT&T.

But that info, not being per-share FMV dollar amounts for the purpose of the Quicken Corporate Spinoff window, still leaves me unable to use that window to get the cost basis correct (or close to correct) in Quicken. I haven’t done anything yet, with the Corporate Spinoff window, nor anything else that would affect my info in Quicken.

So, what do I do with the Corporate Spinoff window to record the spinoff, and the cost bases of AT&T and WBD, in Quicken?

Comments

  • q_lurker
    q_lurker SuperUser ✭✭✭✭✭
    I answered in that other thread. Generally better to keep discussions on one topic in one place. Reduces redundant question and answers. 
  • mvwabc
    mvwabc Member ✭✭✭
    I have a different problem.  I hold shares at two different brokers, and they used different percentages.  However, I was able to verify the percentage of one of the brokers by calculating the percentage myself.  


    To calculate the basis, I multiplied the spinoff ratio (0.241917) times the WBD closing price on 4/11 ($24.78) to get the spinoff value ($5.9947).  I then added the WBD spinoff value ($5.9947) to the T closing price ($19.63), and divided the sum ($25.6747) into the spinoff value ($5.9947) to arrive at the percentage of the original T cost basis that should be attributed to WBD (23.394236%).

    In your case, it looks like the closing prices and spinoff ratio noted above should give you values that match your brokers' data.  Suggest you backup your Quicken and the run the spinoff in Quicken, so you can recover if you don't get the desired result.

  • mshiggins
    mshiggins SuperUser ✭✭✭✭✭
    Quicken user since Q1999. Currently using QW2017.
    Questions? Check out the  Quicken Windows FAQ list