Corporate Spin-offs

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bizcardnut
bizcardnut Member ✭✭
edited May 2021 in Investing (Windows)
I recently entered a Corporate Spin-off transaction into quicken and forgot to check the box to indicate it was a taxable transaction. Anyone know how I can edit that transaction since the transaction does not show up as a separate transaction in the register.
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  • Sherlock
    Sherlock Member ✭✭✭✭
    edited March 2021 Answer ✓
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    As I recall, the Corporation Spin-off wizard in Quicken 2015 would introduce RtrnCap action transactions for the original lots and Bought action transactions for new holdings.  You should be able to locate and delete these transactions and re-enter the spin-off. 

    Before making significant changes to the Quicken file, always save a backup: press Ctrl + B

Answers

  • Sherlock
    Sherlock Member ✭✭✭✭
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    Please provide the version of Quicken being used: select Help > About Quicken

  • bizcardnut
    bizcardnut Member ✭✭
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    I am using Quicken 2015.
  • Sherlock
    Sherlock Member ✭✭✭✭
    edited March 2021 Answer ✓
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    As I recall, the Corporation Spin-off wizard in Quicken 2015 would introduce RtrnCap action transactions for the original lots and Bought action transactions for new holdings.  You should be able to locate and delete these transactions and re-enter the spin-off. 

    Before making significant changes to the Quicken file, always save a backup: press Ctrl + B
  • bizcardnut
    bizcardnut Member ✭✭
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    Thanks Sherlock. That worked. Appreciate the help.
  • q_lurker
    q_lurker SuperUser ✭✭✭✭✭
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    I agree regarding the actions @Sherlock cited.  There may be a consistent memo entry for all the applicable transactions.  Something like "Non-taxable spinoff on 01/02/20".  You may be able to search using the memo field with the right keywords.  Only the two securities involved will need to be reviewed.   

    Taxable spinoffs are rather rare in my experience.  Are you sure?  Care to share the names of the securities?  I am not sure I would trust Quicken's operation with the 'taxable' box checked.  Check the results closely.
  • q_lurker
    q_lurker SuperUser ✭✭✭✭✭
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    PS:  The newer Quicken suggests for a taxable spinoff
    1.  MiscInc transaction for $-value of spinoff shares
    2.  Add Shares 

    That too is 'wrong' in my opinion.  

    1.  Could be a Dividend or MiscInc transaction depending on the structure of the deal.  For the MiscInc, a 'suitable' category would be needed subject to a correct tax-line assignment
    2.  Would need to be a Buy Shares to use up the cash generated in transaction 1.

    Properly configured, I think those would work for QW2015 as well.   

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