Brookfield 2022 Spinoff for MAC

Options
PapaVon
PapaVon Member ✭✭
edited May 2023 in Investing (Mac)

Hello there,

I'm hoping someone can suggest a workaround for the December 2022 Brookfield spinoof for Mac users?

Background, (if I understand it correctly): Brookfield Asset Management Corporation executed a spinoff of the Asset Management business from the Corporation in December 2022. For every share of Brookfield Corporation (formerly traded under "BAM" ticker) the shareholders received 0.25 shares of the spun off Brookfield Asset Management. To complicate things just a tad more, Brookfield Corporation (former ticker "BAM") changed their ticker to "BN" and the new spin-off entity took the old ticker "BAM".

I have seen a discussion for Windows users with some great info on the corporate action as well as how to handle the transaction in Quicken. However, the options presented don't appear to exist in Mac version.

In particular, I have multiple tax lots of the original BAM and would like to be able to correctly assign the cost basis and holding period for the newly named BN shares and the newly minted BAM shares.

Does anyone has insights to an effective workaround?

thank you,

Papa

Answers

  • MontanaKarl
    MontanaKarl Member, Mac Beta Beta
    Options

    This is a complicated one, given different handling for Canadian vs US stockholders. I'm exhausted just reading all of the corporate pages to finally get to this:

    https://bam.brookfield.com/sites/brookfield-bam/files/brookfield-corp/overview/tax-q-a-canadian-and-us-shareholders-dec-2022.pdf

    I'm not sure what the easiest method would be given the ticker renaming. I suppose first I would verify that the CUSIP number for BAM is the CUSIP number for BN. If so, then I'd proces the spin-off as stated. If, though, the CUSIP number for the 'new' BAM is the same as the old BAM… then I'd treat it as a spinoff of BN.

    The steps in Mac are the same as Win… but what I don't know how to do is to do that on the required pro-rated basis for each of you basis lots, much less allocate the fractional share basis to generate a fake sale for the cash-in-lieu of fractional shares to appear as a capital gains transaction. Have to defer to the experts here on that process, as I just don't see how to do things on specific basis lots.

    Quicken user since 1990, MacBook Pro M2 Max on Ventura 13.6.7 • Windows 11

  • PapaVon
    PapaVon Member ✭✭
    Options
    I agree - it is a complicated one! :s

    Thank you kindly for the link and your thoughts on it @MontanaKarl
    Btw, the CUSIP for BN is the same as it was pre spinoff and the new BAM has a new CUSIP, fyi.
  • MontanaKarl
    MontanaKarl Member, Mac Beta Beta
    Options

    The CUSIP for BN being the same as before really helps, as it will just be the ticker that changes and it really will be a spin-off from that holding.

    I hope someone gives you a suggestion for how to handle all of the different basis lots.

    Quicken user since 1990, MacBook Pro M2 Max on Ventura 13.6.7 • Windows 11

  • PapaVon
    PapaVon Member ✭✭
    Options
    Thank you again for the thoughts. I think the cleanest way I've found to handle this is the following:

    1. New Remove Shares transaction on 12/8/22 for all "old" BAM shares - I did this in a single transaction, rather than worry about the individual lot purchases. However, it is important in future steps to know the dates of purchase for the original lots.

    2. New Add Shares transaction(s) on 12/12/22 for BN shares. This is a 1:1 ratio on "old" BAM shares you just removed. Enter one new Add Share transaction for each lot purchased. The transaction date will always be 12/12/22, but the acquisition date will match your original purchase date(s). Note the cost per share for each lot as well (further commentary on this below).

    3. New Add shares transaction(s) on 12/12/22 for new BAM shares. This is a 1:4 ratio on BN shares you just added. However, with my brokerage firm, they issued the new BAM shares pro-rata across my multiple lots rather than on a per lot basis. So, for example, rather than getting 25 shares of BAM for each 100 share lot of BN, I received 24.xxxx. This is because I also have DRIP shares (fractional) in my account which makes this exercise cumbersome. Again, the transaction date will always be 12/12/22, but the acquisition date will match your original purchase date(s) of BN. Note the cost per share for each lot as well.

    4. About the cost per share designation. I followed what my brokerage provided as the new cost basis per lot on 12/12/22. For BN, they calculated 80.58% of the original cost basis for "old" BAM shares. For the "new" BAM spinoff shares, they calculated 77.61% of the original cost basis of the "old" BAM shares. This does not align perfectly with what I saw referenced elsewhere by @RCinNJ but I may have misread what he meant?

    5. For the partial share cash distribution, I booked it as Return of Capital for "new" BAM

    6. Last, but not least, I clear the automatic QB download from my brokerage from my transactions so that i don't double up on things.

    I'm not sure if this is helpful to anyone or not, but certainly have found this community helpful to me. So, thank you.
  • tomxp
    tomxp Member
    Options

    I use a PC but am struggling with the Great Spinoff as well. Really appreciate your detailed description of the steps you took and speculate that this may work for PC's as well.

This discussion has been closed.