On Tue, Feb 20, 2018 at 10:02 PM, nvsoar <nvs...@charter.net> wrote: > > Comment: It seems to me that a zero cost for the spun off shares is > incorrect if a non-zero basis exists for the pre-spin off shares. A zero > cost for the new shares will result in a higher than necessary capital gain > when those shares are sold. The easiest way to determine the new basis for > each of the remaining entities that I have found is to use the cost basis > calculator at the link previously provided. > nvsoar > > Usually here in the US, when a company announces a stock spin-off, the existing shareholders are provided a passel of materials, some of which include a determination by a tax attorney or the IRS describing how to calculate the basis of the spun-off shares. You can usually find the information at the spun-off company's web site (look for a link for "investor information") or as a document available from the company's stock transfer agent.
I can imagine that sometimes such information may not be finalized at the time of spin-off, especially if the IRS objects to some part of it, but my impression is that these things are almost always pretty much settled before the time they occur because there's lots of money involved. And nobody wants any uncertainty when there's lots of money involved... > ----- > Please remember to CC this list on all your replies. > You can do this by using Reply-To-List or Reply-All. > _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information. ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
