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Honeywell (HON) spinoff of Honeywell Aerospace (HONA)

q_lurker

On 6/29/26, HON completed its spinoff of HONA with two aspects in play:

HON shareholders received 1 share of HONA for every 2 shares of HON held, and
After the spinoff, HON underwent a 1-for-2 reverse split.

On 6/29/26, HON closed at 227.80 and HONA closed at 220.19. So, if an investor started with 100 shares of HON, they now have 50 shares of HON at the 227.80 value and 50 shares of HONA at the 220.19 value. That is roughly equal to each meaning we can expect the cost basis to be allocated to each about equally (a little more to HON, a little less to HONA.

Also, FWIW, below is a snip of my HON price history after the close today (6/29/26). That is showing that the prices of HON for 6/22 through 6/26 have now been adjusted for the 1:2 reverse split. That is a wholly incorrect adjustment, IMO, since I will not be entering the actual split (cutting the number of shares in half) until later this evening as a 6/29/26 transaction.

How To Handle — This is MY CURRENT APPROACH as I still have issues with Quicken's Corporate Spinoff wizard.

I am currently a HON shareholder, so I will voluntarily use my numbers - 45 shares in one lot with a basis of $6,291.95 acquired 11/6/2018

Under the terms of the spinoff, I am entitled to 22.5 shares of HON and 22.5 shares of HONA. Using the closing values, the HON will have a value of 227.80 and HONA of 220.19 (per share) for a total of 447.99. The HON portion of that is 227.8 / 447.99 = 50.8493%; the HONA portion is then 49.1507%. So I will treat (for now) the basis transfer as 49.1507% of $6,291.95 = 3,092.53 from HON to HONA.

My first Quicken action: create the HONA security (before any download from the brokerage):

Ctrl-y to get the security list
Add Security button
Enter HONA in the 'symbol' field
Click on the Honeywell Aerospace that should appear
Next
Uncheck the 'Watch List' option (user choice)
Done

My Second Quicken action: Three transactions to enter. I am using the Enter Transaction button and forms

RtrnCapX — (If the X variation is not available, pairing with a WithdrawalX or an Update Cash balance may work, still referring back to the same account)
- Amount = 3,092.53 (basis transfer calc above)
- Security = HON
- Market value = 4954.28 (22.5 HONA shares * 220.19 HONA closing value) **Yes I mean HONA values!! **
- Xfr Acct = [same account I am entering the transaction in]
- Memo = Spinoff of HONA (or as user chooses)
Add Shares —
- Date = 6/29/2026
- Security = HONA
- Shares = 22.5
- Price (skip)
- Total Cost = 3092.53 (same as RtrnCap Amount; Quicken calcs Price as 137.445778)
- Date Acq = 11/6/2018
- Memo = Spinoff from HON (or as user chooses)
Stock Split
- Date 6/29/2026
- Security = HON
- New shares = 1
- Old Shares = 2
- Price = 227.80
- Memo = Reverse split as part of spinoff.

That is the basic for this deal for a single lot holding.

Because I had an odd number of shares to begin with (45), I have two more transactions. I'll input them now for example but change them when I get accurate information. These are the cash-in-lieu transactions.

Sell Shares
- Date = 6/29/2026
- Security = HON
- Shares = 0.5
- Price = 227.80 (for now, subject to later correction)
- Total Sale = 113.90 (for now, subject to later correction)
- Memo = Sale of Fractional share for cash in lieu (or as user chooses)
Sell Shares
- Date = 6/29/2026
- Security = HONA
- Shares = 0.5
- Price = 220.19 (for now, subject to later correction)
- Total Sale = 110.10 (for now, subject to later correction)
- Memo = Sale of Fractional share for cash in lieu (or as user chooses)

My 5 transactions:

You might note Quicken resorted my transaction placing the stock split first. That is still ok, since I am simply pulling out $3,092.53 of basis from the HON holding. It doesn't really matter if that is a holding of 45 shares or 22.5 shares at that point.

Before I finish this, I will also be halving the Amounts in the price history data for HON between 6/22 and 6/26 to keep the market values correct on a daily basis.

Later possible correction:

As noted the cash-in-lieu amounts and date received will be different than I have used above. It is also possible that the brokerage will transfer a different basis amount than I have computed (something other than 49.1507%). If that is the case, the 'correction' is to simply put in the correct amount where I have entered the 3,092.53 in the RtrnCapX and Add Shares transactions. No other transactions need to be adjusted for a different basis allocation. It is (sort of) important if fractional shares are involved to get the full basis transfer before the fractional share cash-in-lieu shares are sold off.

Multiple lot holdings do get more complex. I'll try to tackle that tomorrow as an addendum.

Ask away.

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Comments

Quicken Anja

Hello @q_lurker,

Thank you for sharing this detailed information and your approach for handling the Honeywell (HON) / Honeywell Aerospace (HONA) spinoff in Quicken.

We appreciate you taking the time to document the steps and provide guidance that may help other users navigating this corporate action.

Thank you!

mshiggins

@q_lurker in your first bullet, you said:

HON shareholders received 1 share of HON for every 2 shares of HON held, and

Should that be:

HON shareholders received 1 share of HONA for every 2 shares of HON held, and

I have not yet had any coffee so my brain isn’t braining yet.

mtbdog

Just what I needed, including the odd number of shares and transfer of basis.

However, the CUSIPs of the Honeywell International pre- and post-split are different.
—Pre-split 438516106
—Post-split 438516205

The following link to the Honeywell website has the details of both transactions.
Honeywell Board of Directors Sets Record Date and Announces Expected Timing For Spin-Off of Honeywell

"Honeywell common stock will continue trading on Nasdaq (under the symbol "HON"). The new CUSIP number for Honeywell common stock following the reverse stock split will be 438516205." Italics added.

So what I'm wondering is whether a new security with the new CUSIP should be created to receive the split shares, i.e., Remove shares all CUSIP 438516106 and Add shares CUSIP 438516205. I don't see a way to change the CUSIP for the existing security in Quicken.

I'm not going to enter this until I see your response. I'll also see what ChatGPT comes up with.

MatthewClark

@q_lurker this is great. But at least on Quicken for Mac, the return of capital doesn't adjust the cost basis for the original HON shares. Anyone have any suggestions on how to adjust the basis of the original HON shares after the spinoff?

mtbdog

This is what ChatGPT said after reviewing the Board of Directors announcement and @q_lurker solution. In short, it suggests creating the new security with the new CUSIP. Then record transactions similar to @q_lurker 's.

My question to ChatGPT:

2026-06-30 Honeywell spinoff and stock split effective 6-29-2026.

This should be fair straightforward to enter into Quicken, with a couple of wrinkles.

1. For some reason Quicken downloaded double the market price of HON shares during 6-22 - 6-25-2026. The solution to that is edit the price history for those dates, dividing by 2.

2. The Honeywell Board of Directors information says post-split HON will have a new CUSIP. It does not say a new security would be issued. It's not possible to change the CUSIP of the security in Quicken. Seems the only solution to having a mating security in Quicken is create a new one with the correct CUSIP. I let Quicken download a new security this morning for HON.

Many Quicken users don't trust the Quicken stock split function, and use Remove Shares and Add Shares, and do their own basis calcs for individual lots. I've done it both ways. If a new security is to be added I'm thinking maybe:

1) Allow Quicken to do the split after recording the spinoff.
2) Remove Shares and Add Shares for the respective CUSIPs.
3) Record Return of Capital for pre-split and transfer basis to the post-split security.

Here is a link to the discussion in Quicken Community about this. A user posted a logical way to handle both the spinoff and split. But he didn't consider the changed CUSIP. My reply is there.

https://community.quicken.com/discussion/comment/20561808#Comment_20561808?utm_source=community-search&utm_medium=organic-search&utm_term=honeywell

Here is a link to the Honeywell Board of Directors announcement.

https://www.honeywell.com/us/en/news/press-releases/2026/06/honeywell-board-of-directors-sets-record-date-and-announces-expected-timing-for-spin-off-of-honeywell-aerospace-and-honeywell-reverse-stock-split

If you are unable to read either of these, I'll copy/paste the text.

ChatGPT reply:

I can read both pages. Your basic instinct is right, but I would not use all three of your proposed steps. That would make the reverse split more complicated than necessary and risks adjusting the HON basis twice.

What actually happened

The legal sequence on June 29 was:

12:01 a.m.: Honeywell distributed one HONA share for every two pre-split HON shares.
12:02 a.m.: The remaining HON underwent a 1-for-2 reverse split.
Post-split HON continued under ticker HON, but its CUSIP changed from 438516106 to 438516205.

Thus, for every two original HON shares, you ended up with:

one HONA share, and
one post-split HON share.

The spin-off is expected to be tax-free except for cash paid for fractional shares.

My recommended Quicken treatment

Because you already allowed Quicken to create a new post-split HON security carrying the new CUSIP, I would use two separate Honeywell securities:

Honeywell International — pre-split, CUSIP 438516106
Honeywell International — post-split, CUSIP 438516205

Rename them clearly enough that you cannot select the wrong one accidentally. Both cannot comfortably use the same ticker for quote downloads, so the old security’s ticker can be removed after the conversion.

Step 1: Correct the erroneous price history

For the old HON security, divide the erroneous June 22–25 prices by two.

The Quicken discussion confirms that the quote service retroactively adjusted several pre-split prices even though the shares had not yet been reduced in Quicken. That doubled the historical market value unless the prices were manually corrected.

You might inspect June 26 as well. The other user found the adjustment affected June 22 through June 26, although your file may differ.

Step 2: Record the HONA spin-off first

For every original HON lot:

Enter Return of Capital against the old, pre-split HON security for the portion of that lot’s basis transferred to HONA.
Enter Add Shares for the corresponding HONA shares:
- one HONA share per two original HON shares;
- transferred basis equal to the Return of Capital amount;
- original HON acquisition date.

That is essentially the method described by q_lurker.

For multiple lots, allocate the HONA basis lot by lot, using the same allocation percentage for each lot.

Step 3: Convert the remaining old HON into new-CUSIP HON

Do not first enter a stock split on the old security and then remove and add it.

Instead, use either:

Preferred: Corporate Acquisition — stock for stock

Treat the new-CUSIP HON security as receiving:

0.5 new HON share for each 1 old HON share.

Quicken’s Corporate Acquisition transaction should:

remove the old-CUSIP HON shares;
add the post-split HON shares;
preserve each lot’s remaining basis;
preserve each lot’s original acquisition date.

Economically, this is not an acquisition, of course. It is simply the most useful Quicken machinery for converting one security identity into another while applying a share ratio and preserving lots.

Alternative: Manual Remove Shares and Add Shares

For each old HON lot:

Remove the original number of old-CUSIP shares.
Add half as many post-split HON shares.
Enter the lot’s remaining basis after the HONA allocation.
Retain the original acquisition date.

This works, but it is more labor-intensive and invites transcription errors.

Why I would not enter both a split and a conversion

Suppose a lot originally had:

100 old HON shares;
$10,000 basis.

After allocating, say, 49% to HONA, the old HON lot has approximately:

$5,100 remaining basis.

The reverse split/CUSIP conversion should produce:

50 post-split HON shares;
$5,100 basis.

You can accomplish that by either:

splitting the existing security and continuing to use it, or
converting the old security into the new-CUSIP security at 0.5-for-1.

Doing both is redundant.

Also, there should be no additional Return of Capital for the CUSIP conversion. The only Return of Capital is the amount of basis transferred from HON to HONA. Another ROC entry would reduce the combined basis below the original amount.

The basis percentage is still provisional

The community calculation using June 29 closing prices was:

HON: $227.80
HONA: $220.19
HON allocation: 50.8493%
HONA allocation: 49.1507%

That is logical as a temporary estimate, but I would not regard it as final tax accounting. Honeywell should eventually publish an IRS Form 8937 or other tax-basis guidance specifying the recommended allocation methodology. Your brokerage may also populate its lots after processing the corporate action.

So I would either:

wait for the official allocation before entering the basis transactions, or
use 49.1507% provisionally and mark the transactions clearly for later correction.

Bottom line

Your clean sequence is:

Correct the bad June 22–25 or June 26 historical prices.
Record the HONA basis transfer from old HON.
Add HONA lots.
Convert old-CUSIP HON to new-CUSIP HON at 0.5-for-1, preserving each lot’s remaining basis and acquisition date.
Later enter the actual cash-in-lieu sales for fractional HON and HONA shares using the brokerage’s amounts and dates.

No separate Stock Split transaction is needed if you use the old-security-to-new-security conversion. No second Return of Capital belongs in the HON CUSIP conversion.

The changed CUSIP does not legally make post-split HON a different investment, but maintaining two Quicken securities is a reasonable bookkeeping choice because Quicken cannot manually edit the downloaded CUSIP and uses that CUSIP to match brokerage holdings and transactions.

mtbdog

This is how I've named the respective securities. I haven't entered anything into Quicken yet, pending @q_lurker 's reply.

q_lurker

@mshiggins thank you. You are correct, it was a typo error on my part. I have edited the original.

@mtbdog I would choose NOT to create a second Honeywell HON for the revised CUSIP. I would edit the existing security to uncheck the Matched with online security box and then make sure the next download from the brokerage properly matched the 'new' Honeywell to the existing (in Quicken) security.

My rationale: I've owned HON for some period of time. I would want to monitor it's performance over that period of time and into future times. The very nature of these spinoff can make that difficult (first the Solstice, now the Aerospace). I realize the old Honeywell is not the same as the going forward version, but in my perspective I made an investment in the old version, it paid out value in the two spinoffs and in growth and dividends. It will hopefully continue to show growth (I'm not offering investment advice in that regard.) In my mind, it is cleaner to keep it as one ongoing security. A much smaller issue: I don't want to add in another security to my 30+ year old list of securities if I don't need to, and I don't need to in this case.

Beyond that, your ChatGPT question had some bias (Many users don't like … stock split function) that I would disagree with and the answer was longer and more extensive than I could take in within this setting. My take was that outside of the CUSIP change, ChatGPT did not have an issue with what I proposed.

@MatthewClark This was posted under the Windows territory for Windows users. I know in some but not all cases, that can translate to the Mac side. I have no experience on the Mac side so I can't offer anything in that direction.

mtbdog

"Beyond that, your ChatGPT question had some bias (Many users don't like … stock split function) that I would disagree with and the answer was longer and more extensive than I could take in within this setting. My take was that outside of the CUSIP change, ChatGPT did not have an issue with what I proposed."

Yes, ChatGPT agreed with your rationale concerning a new security when I gave it your response.

Bias? Bro, I've been using Quicken since the '80s. What I said is my observation. No need to characterize it. Let's keep it civil.

Thanks again for your detailed explanation.

Cheers!

Tman

What is wrong with the Quicken Stock Split function? I've used it many times. Seems to work well as most of my splits have multiple lots

mshiggins

I have never had issues with the stock split function. I’ve been reading posts in various iterations of Quicken forums for more than 25 years and don’t recall reports of issues with the function.

@mtbdog can you cite some references for users reporting they had issues with the stock split function?

courtneyg

I have multiple lots for HON and when trying to split the shares have quicken behaving very oddly.

Posted the details here:

https://community.quicken.com/discussion/7974530/investment-holdings-not-right-after-remove-add-shares

Ideas? Seems like a bug to me.

mtbdog

Return of Capital:
RtrnCap resulted in a cash balance. I don't see how to avoid it and none of the subsequent steps seem to clear the cash. Also, Xfer Acct button is grayed out.

Later RtrnCapX is mentioned. That function isn't available when I try to enter a transaction in this retirement account.

I'm guessing that the transfer back into the same account clears the cash. But the transfer options aren't available in retirement accounts. I checked a regular brokerage account and the options are there.

My solution: created a non-tax expense category, Noncash spin-off basis offset. Removed the "cash" from the return of capital transactions as a MiscExp using that category. Added a more detailed explanation in the memo. This expense will probably show up in income and expense reports. Just have to ignore it.

Edit: Update cash balance may be a better way to do this.

q_lurker

@mtbdog Yes, RtrnCapX is intended. It is apparently unfortunate limitation within retirement accounts to not allow the RtrnCapX. It is probably to better manage contributions and withdrawals to/from the account. My approach would be to try a WithdrawalX transaction which is allowed and have it refer back to the same account. I have not searched for unintended consequences to that path. I suspect the effect is the same as the Update Cash balance you opted for.

I will edit the original post to clarify the RtrnCapX aspect. Thank you.

q_lurker

THE MULTI-LOT Case

If I had HON shares bought at separate times for separate prices per share (a multi-lot holding), I would first enter the HON stock split as a 1-for-2 split on 6/29/26 with the closing price of $227.80 per share.

I would then use the standard Corporate Spinoff event as a 1:1 spinoff of HONA from HON with the closing prices of 220.19 (HONA) and 227.80 (HON). (I tried the spinoff then Split and something didn't flow correctly.) That would generate:

A Removed Shares of the HON holding
A MiscIncX transaction applicable to HON
A series of Added Shares of HON (1 for each lot)
A series of Added Shares of HONA (1 for each lot)

I have found those transactions to be accurate for the specific prices used. BUT, those may not be the same prices your brokerage uses or finalizes with. ALSO, I seriously dislike that MiscIncX that is (somewhat) difficult to recreate.

So what I then do:

Delete the MiscIncX transaction
Enter a RtrnCapX transaction exactly like used for the single lot case
Edit each of the parent company transactions (Remove all Shares and Add Shares each lot) by adding one day to their transaction date.

Why the third step redating the transactions? Quicken’s methodology for distributing the RtrnCap amount to various lots strictly uses number of shares. For this type of redistribution of the basis, the methodology must be based on basis of each lot rather than number of shares of each lot.

What I then have on the actual transaction date is essentially the same whether it is a single lot holding or a multi lot holding. I have one RtrnCapX (same one either way), then one Add Shares of the spinoff company for each lot. Then the next day, I have a transaction removing all shares of the parent company and a series of Add Shares adding them back in with the correct basis for each lot.

As an example, I broke my prior (real world) circumstance into a a three-lot holding. My final transactions would be as shown below.

I will add that for this specific example, the RtrnCap calculation overstated the HON 10-share basis by about $96.13, overstated the 7.5-share lot by 1.32, and understated the 5 share lot by 97.45. Significant? To some, yes. To others, no.

What to do if your brokerage uses a different calculation to determine the basis transfer.

Assuming the differences are significant and the user is desiring such accuracy, I would seek from the brokerage the lot-by-lot basis values, then individually edit each Add Share accordingly. For the one-lot situation, the correction is simply determining the correct amount for the RtrnCapX and for the Add Shares of the spinoff.

Questions: Feel free to ask.

deathrs

I used the corporate spinoff function for HON to HONA and then the Stock-split function for the reverse split transaction. Everything seems to work as it should. I had multi lots for the stock and the quicken calculations look correct. They match closely to those of my fidelity brokerage account. However, when I ran a comparison report for overall income and expense. It contained an "uncategorized" expense. the expense was related to the stock split transaction. when I look at that transaction. I do not see an uncategorized expense or a categorized expense in the amount shown on the report.

any suggestions to reconcile this phantom expense or should I just delete all the related transactions and follow the step contain in the messages above?

Thanks for your help

q_lurker

If you are not seeing a value or amount for the uncategorized expense, I’d suggest ignoring it.

My steps above are because of the ‘odd’ ‘hard to explain’ MiscIncX transaction that gets categorized to _UnrealizedGains. If that does not bother you or cause you other issues, you can stick with the Quicken approach, in my opinion.