Message Font: Serif | Sans-Serif
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next
Author: ripwest Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 122998  
Subject: Re: cost basis for spinoffs Date: 9/28/2000 10:32 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 1

How do I calculate the cost basis of a spinoff company? Is it -0-, since I did not make a purchase? Or is it the stock price at the close of the first day of trading?

And TMF ExRO answered......

You do it the way they told you to in all that paperwork that you didn't read during the spinoff. If you don't have that paperwork handy and it was a relatively recent spinoff, you'll probably find the calculations on the discussion board for either company. Type the symbol in the "Ticker" box below and click "find."

I would just add that you DON'T do it by applying the treatment in Quicken, which ends up with the holding period of the new stock starting with the spin off date and with no cost allocated to the spun off stock. I couldn't believe that this granddaddy of financial packages could have accounting for spin offs so wrong until I went the the newsgroup for Quicken.


Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
Post of the Day:
Fool One Central

Look at the Total Risk
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.