My stock ATK changed into VSTO and OA. How do I enter that transaction.

m1kem1llsm1kem1lls Member
edited April 2018 in

I had 100 shares of ATK. ATK spun off 200 shares of VSTO, then changed from ATK to OA. How do I make that change in quicken and how do I allocate the basis to both of these new stocks?

Comments

  • Quicken Generic UserQuicken Generic User Member ✭✭✭✭
    edited July 2016
    Neither company has yet posted Form 8937 - "Report of Organizational Actions Affecting Basis of Securities" - on their website.

    These forms, when posted, will tell you how your original basis gets sliced and diced into the new securities and it's always best to perform the calculations outside of Quicken and on a lot-by-lot basis.

    Mechanically, there are various ways of actually entering this transaction but the safest way is via the use of Remove and Added actions, removing the ATK stock and adding the VSTO and OA stock with their new bases and - in most cases - their old holding periods.

    Wait until these forms are issued - the companies have 45 days to do so - and once they are available do your calculations and post a new question, if you need to, in order to get some help with the mechanics.
  • RickDetroitRickDetroit Member ✭✭
    edited February 2017

    I had this transaction as well. I agree with everything Tom says in his post, but here is the method I used. It's quick and accurate, with one exception - your Quicken register will show VSTO carrying the acquisition date of your original ATK purchase (instead of the correct spinoff date). Dollars will be correct though, steps are simple and costs can be fixed later if you still don't have the info from your broker.


    This is a non-taxable spin-off. 2 shares of VSTO for each share of ATK. ATK basically becomes OA (a name change in your Quicken register).



    FIRST: Make sure you don't have VSTO in your security register when you do this. This is important.



    Then:


    1)Go to your account in the Quicken Register and Enter Transactions. From the list, choose "Corporate Securities Spin-off". Fill out that set of dialog boxes. The cost per share of VSTO is based on the relative market values on Feb 10. Again, you can swag this today and adjust your register later when your broker gives you the exact numbers. Schwab reported the cost split in the past few days, and mine worked out to about 45.75% OA and 54.25% VSTO (i.e. those % against your original ATK purchase cost). This came up pretty close to my calculations anyway.


    2)Record a corporate name change from ATK to OA, if you haven't already done so.



    3)Update your historical VSTO prices. Then check that price history file for VSTO. In my case there were a couple of prices prior to January, and I just deleted them. You might consider deleting any January prices as well so that your January month-end doesn't include the VSTO position.



    The result: If you look back at your original ATK purchase, you will now see 3 transactions. First, the original purchase itself, unchanged from before. Second, a "RtrnCap" in the amount of the new cost for VSTO. Third, a "Bought" for VSTO showing those shares purchased at the spin-off cost. Your securities register will show the correct costs for VSTO and OA, and the correct shares. Acquisition date for VSTO will be wrong.



    Later, if you need to correct costs, just quickly edit the pair of transactions.
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