Stock Split - Cash in Lieu

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.

Comments

  • NotACPA
    NotACPA SuperUser ✭✭✭✭✭

    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 user since February, 1990. DOS Version 4
    Now running Quicken Windows Subscription, Business & Personal
    Retired "Certified Information Systems Auditor" & Bank Audit VP

  • q_lurker
    q_lurker SuperUser ✭✭✭✭✭

    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
    Rob191 Member ✭✭

    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
    NotACPA SuperUser ✭✭✭✭✭

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

    Q user since February, 1990. DOS Version 4
    Now running Quicken Windows Subscription, Business & Personal
    Retired "Certified Information Systems Auditor" & Bank Audit VP