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MMM spin-off of Solventum gives zero cost basis

Bernie M

Quicken Classic Premier is showing blank for the average cost of shares after a spin-off.

On April 1, 2024, shareholders received 1 share of Solventum for every 4 shares of MMM (3M). Using the spinoff feature in Quicken Classic Premier, Quicken did enter the transactions to make the adjustments by removing and added back in shares of MMM and adding shares of Solventum. Each of the add transactions for Solventum show a number of shares and an Investment Amount. The Account Overview (and Investing) have the correct number of shares, BUT blank for the Average Cost Per Share and thus 0.00% for Gain/Loss.

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Comments

q_lurker

Since the transactions themselves include the Investment Amount, the problem is likely in the display of the Average Cost per share and Gain/Loss%.

Gain/Loss% should follow from Gain/Loss $ and Cost Basis $ (not from average cost/share). So I assume Cost Basis $ is also wrong in the display.

Sometimes closing and reopening that display will clear it up. Sometimes exiting the program and restarting it will clear up such a display issue.

From there, I would likely look at a different 'view' (customize as necessary) and see if the data data happens to appear there.

q_lurker

For general reference, other discussion about the MMM / SOLV spinoff is here. But I don’t think that discussion will shed specific light on your gain/loss issue.

[Deleted User]

@Bernie M - I think the crux of your issue might be that Average Cost is not used for stock unless that stock was acquired as part of a dividend reinvestment program after 12/31/2010.

q_lurker

While Average cost cannot be used for capital gains calculations of stock sales, Quicken will show (display) the average cost per share of stock you own. That column can be added to any portfolio view.

[Deleted User]

Average cost is not an option when setting up a stock fund in Quicken. I am not sure how the 3M stock was originally set up with average cost?

q_lurker

@QuickUserPSP The issue as I understand it is within the portfolio views which can be customized to show Average Cost per Share as shown below. Note that the GE and GEV entries in this test file went through a Spinoff action. This is totally unrelated to how realized capital gain/loss is calculated.

Same data by account showing the expanded holdings for BRK.B. The 209.02 is the $104,510 / 500 shares though the actual purchase prices ranged from 193.52 to 226.50.

Jim_Harman

If you accepted downloaded transactions for the spinoff, the cost basis may have downloaded as zero. Of course if the cost basis is zero, the average cost per share will also be zero.

q_lurker

@Jim_Harman The baffling part to me is …

@Bernie M wrote: "Each of the add transactions for Solventum show a number of shares and an Investment Amount."

Perhaps there is a hidden placeholder for the SOLV shares messing up the presentation of Average cost and gain/loss?

[Deleted User]

@q_lurker - thanks for the clarification, I misunderstood the original question. I have never used the average cost per share in Portfolio.

@Bernie M - you mentioned using the "spinoff feature" in Quicken. Verify that you have the correct closing prices for 3M and SOLV entered.