How do I enter an Exchange MMM to NEOG

firecop8 Member ✭✭
edited October 2022 in Investing (Windows)
Shares of 3M (MMM) were exchanged for shares of Neogen Corp (NEOG)?


  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
    Here's my "10,000 foot" take on the transaction based on some quick reading:
    1. The first action was a split-off whereby you ended up with fewer shares of 3M and 6.7713 shares of Garden Spin-co for each 3M shares tendered.
    2. You then tendered all your shares of Garden Spin-co and received shares of Neogen on a 1-for-1 basis.
    You can ignore Garden Spin-Co in all this and simply deal with your 3M shares and your Neogen shares.
    Tax-wise each lot of 3M that got tendered carries over all its attributes - cost basis and holding period - to the Neogen shares received, at no gain or loss, except for fractional shares not distributed to you.  The Cash in Lieu  received for a fractional share will be treated as the "proceeds" of the sale of the fractional share at a gain or loss.

    If I've got this right then you're going to have to make manual entries in Quicken to get the proper accounting since there's no "wizard" for a split-off.  I'd advise waiting for a few days to see what further information might be forthcoming from either company and to see how your broker handles the details in your brokerage account.
    Basically, you'll do a Remove entry for each lot of 3M shares tendered and then do an Add entry for the resulting shares of Neogen received.  Then you'll sell the fraction of a share.

  • firecop8
    firecop8 Member ✭✭
    Thanks. No worries about taxes as all is in an IRA.
  • firecop8
    firecop8 Member ✭✭
    I think I will enter MMM as a sale and NEOG as I purchase all at the same price of NEOG on the conversion date. Since they are in IRAs no need to worry about taxes.
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