Corporate security spin-off - mess up cost basis

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Patrick
Patrick Member ✭✭✭
edited May 2018 in Investing (Windows)
Let's say for HPQ stock.  I bought this HPQ stock with several different batches over a period of time.   HPQ had a spin-off with HPE back in 2015, and then HPE had another spin-off in 3/2017, in 2017, and also another spin-off later the year in 2017

I tried to use Quicken Corporate Security spin-off transaction.  However, it doesn't work well if I have purchased a stock with several multiple batches over time,  as it will mess up the cost basis or of the original stock. 

In this case, it messes up the HPQ cost basis when recording the spin-off of HPE from HPQ in 2015
And then it messed up the HPE cost basis when recording the spin-off of DXC from HPE in early 2017
And then it messed up even more badly the HPE cost basis when recording another spin-off of another stock from HPE later in 2017.

I am using Quicken 2016 Home and Business R14.12 build 25.1.14.12 on Windows 7.

Thank you.

Comments

  • q_lurker
    q_lurker SuperUser ✭✭✭✭✭
    edited May 2018
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    For all versions of QWin prior to QW2017, I have recommended not using the internal Corporate Spinoff action which generated back-dated transactions.  Instead, i have recommended using a Remove Shares / Add Shares sequence which keeps the data timely and accurate.  QW2017 adopted that same procedure.  

    I would suggest at this stage you only corrective action would be to delete all the associated transactions generated by the Corporate Spinoff action you entered and re-enter the events using Remove shares and Add Shares.  For an investment with many lots, that might not be worth the effort.  Depends on your objectives and needs.  

    I believe I have laid out some steps that can ease the process, but do not have those off-the-top.  Post back if you want more info.  
  • q_lurker
    q_lurker SuperUser ✭✭✭✭✭
    edited March 2018
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    q.lurker said:

    For all versions of QWin prior to QW2017, I have recommended not using the internal Corporate Spinoff action which generated back-dated transactions.  Instead, i have recommended using a Remove Shares / Add Shares sequence which keeps the data timely and accurate.  QW2017 adopted that same procedure.  

    I would suggest at this stage you only corrective action would be to delete all the associated transactions generated by the Corporate Spinoff action you entered and re-enter the events using Remove shares and Add Shares.  For an investment with many lots, that might not be worth the effort.  Depends on your objectives and needs.  

    I believe I have laid out some steps that can ease the process, but do not have those off-the-top.  Post back if you want more info.  

    PS:   Info on the HPQ / HPE split that (I think) includes most of my relevant thoughts.
    https://getsatisfaction.com/quickencommunity/topics/how-to-record-the-hewlett-packard-split
  • Patrick
    Patrick Member ✭✭✭
    edited March 2018
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    q.lurker said:

    For all versions of QWin prior to QW2017, I have recommended not using the internal Corporate Spinoff action which generated back-dated transactions.  Instead, i have recommended using a Remove Shares / Add Shares sequence which keeps the data timely and accurate.  QW2017 adopted that same procedure.  

    I would suggest at this stage you only corrective action would be to delete all the associated transactions generated by the Corporate Spinoff action you entered and re-enter the events using Remove shares and Add Shares.  For an investment with many lots, that might not be worth the effort.  Depends on your objectives and needs.  

    I believe I have laid out some steps that can ease the process, but do not have those off-the-top.  Post back if you want more info.  

    Thank you for your suggestion. 
  • Patrick
    Patrick Member ✭✭✭
    edited March 2018
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    q.lurker said:

    For all versions of QWin prior to QW2017, I have recommended not using the internal Corporate Spinoff action which generated back-dated transactions.  Instead, i have recommended using a Remove Shares / Add Shares sequence which keeps the data timely and accurate.  QW2017 adopted that same procedure.  

    I would suggest at this stage you only corrective action would be to delete all the associated transactions generated by the Corporate Spinoff action you entered and re-enter the events using Remove shares and Add Shares.  For an investment with many lots, that might not be worth the effort.  Depends on your objectives and needs.  

    I believe I have laid out some steps that can ease the process, but do not have those off-the-top.  Post back if you want more info.  

    Just a question, would you recommend using the Quicken stock split function for any stock split like 2 for 1, etc?   Or would you recommend using this same Remove Shares / Add Shares sequence.    Thank you.  
  • q_lurker
    q_lurker SuperUser ✭✭✭✭✭
    edited March 2018
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    q.lurker said:

    For all versions of QWin prior to QW2017, I have recommended not using the internal Corporate Spinoff action which generated back-dated transactions.  Instead, i have recommended using a Remove Shares / Add Shares sequence which keeps the data timely and accurate.  QW2017 adopted that same procedure.  

    I would suggest at this stage you only corrective action would be to delete all the associated transactions generated by the Corporate Spinoff action you entered and re-enter the events using Remove shares and Add Shares.  For an investment with many lots, that might not be worth the effort.  Depends on your objectives and needs.  

    I believe I have laid out some steps that can ease the process, but do not have those off-the-top.  Post back if you want more info.  

    I have had no problems with the stock split function, so yes, I would recommend that tool in the kit.  
  • Patrick
    Patrick Member ✭✭✭
    edited March 2018
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    q.lurker said:

    For all versions of QWin prior to QW2017, I have recommended not using the internal Corporate Spinoff action which generated back-dated transactions.  Instead, i have recommended using a Remove Shares / Add Shares sequence which keeps the data timely and accurate.  QW2017 adopted that same procedure.  

    I would suggest at this stage you only corrective action would be to delete all the associated transactions generated by the Corporate Spinoff action you entered and re-enter the events using Remove shares and Add Shares.  For an investment with many lots, that might not be worth the effort.  Depends on your objectives and needs.  

    I believe I have laid out some steps that can ease the process, but do not have those off-the-top.  Post back if you want more info.  

    Thank you.   
  • ksm
    ksm Member ✭✭✭
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    Want to add my thanks to q.luker for posting the solution to the same problem I had for the Alcon spin off from Novartis 4/9/19. I recorded that in Qkn Deluxe 2016 just before upgrading to Qkn Deluxe 2019. Your Remove and Add shares solved the issue that the total basis for my two lots was correct, but the individual lots were incorrect.
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