nav[aria-label="Primary Navigation"] { padding: 0; & ul { list-style: none; width: 100%; display: flex; flex-direction: row; justify-content: start; align-items: start; gap: 30px; padding: 0; & li { margin: 0; } & ul li { list-style: none; } } }

Stock Split - Cash in Lieu

Rob191

Running - Classic Premier, V: R55.13, Build: 27.1.55.13. I've seen the community entry about entering a manual Sell transaction when receiving cash-in-lieu of fractional shares on an investment split. That's what I did after seeing the share count mismatch. Since cash-in-lieu seems to happen quite a bit for fractional shares resulting from a split, it might be good to see cash-in-lieu added to the split transaction dialogue.

Find more posts tagged with

Comments

NotACPA

Except there are possible CapGain/Loss issues (even if tiny) associated with that fractional sale … so a straight SELL transaction would be the most accurate.

q_lurker

Except there are possible CapGain/Loss issues …

I took it that the OP was suggesting a Sell transaction be automatically generated. It would need to default to

the normal FIFO shares, or
the user specified FIFO or LIFO shares per preferences for handling downloaded sells

From there the user could respecify sold shares if some other selection applied.

I did have a case last year where from some deal I had the fractional shares as 0.3333 and the brokerage treated them as 0.33. Ended up making a $0.10-0.15 difference on cost basis which challenged my OCD sensibility, but I got past it.

Rob191

Interesting point of view. Since the actual account doesn't show a sale transaction, just the full shares from the split and a cash-in-lieu entry, I assumed that there were no fractional shares issued and therefore none sold. But all the write-ups I've seen that explain cash-in-lieu do seem to treat cash-in-lieu as shares sold. Thanks for the information.

NotACPA

@rob191, If you use Q's Stock Split wizard, the fractional shares will be automatically created. Then you can sell them.