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Bonus shares ... which transaction type?
Hello,
I am about to receive bonus shares for one of my holdings. Which transaction type should I use in PS and what data do I need to enter? Actually, the bnous shares will only increase the quantity of the holding and will affect its cost basis.
Thank you,
Ralph
I am about to receive bonus shares for one of my holdings. Which transaction type should I use in PS and what data do I need to enter? Actually, the bnous shares will only increase the quantity of the holding and will affect its cost basis.
Thank you,
Ralph
Comments
Use Transaction type "SymbolTransferIn" and the important part is to specify a value in CostBasisOverride field as 0. So you will add shares with a cost basis of 0.
Thought I'd post here as my question is also related to a bonus issue.
How do I deal with the transaction type when the bonus shares are from a new issue - i.e. my current holding is giving me a bonus issue of new shares with a different ticker on a 2:1 basis.
Can I use cost override of zero here - I will then have no cost basis for the new stock?
Thanks
Laurence
Yes you can override cost basis for new issue to 0 and that should work. Another option is to reduce cost basis of original holding and use that amount as cost basis for new shares. In such case you would need 3 transactions - one for SymbolTransferOut for original symbol, another for SymbolTransferIn for same original symbol but with cost basis override to smaller value and third for SymbolTransferIn for new shares with cost basis override .
Don't think cost override for the original stock needs to change and, besides, if it did, I wouldn't know what the proportions should be, so will just override the new stock to zero and accept infinite return figures for it!
I have a follow-up question on this conversation.
I have version 2.3XL16. In the comments for transaction type "SymbolTransferOut", it says to specify original book value in "BookValueOverride".
Question 1: Where is the column "BookValueOverride"? I don't see it.
Question 2: In my case, I bought AGU.TO and POT.TO shares and documented the purchases in PS. In Jan 2018, both stocks got converted to NTR.TO. Investorline provided me the exchange price for AGU and NTR, so I entered in PS. However, Questrade didn't provide me the exchange price for POT and NTR, so I looked up the close prices on the last day POT was traded. I, therefore, have two transactions for the AGU-NTR exchange and two transactions for POT-NTR exchange. In both cases, the price of NTR is the same. Do I still need to do a "BookValueOverride"? I personally don't think so, because PS did it accurately for me as I can verify in the CBI column.
1. Sorry - that is my mistake - as I did some renames before release. Column "K" is srcTrans worksheet is "CostBasisOverride" and that is supposed to be used instead of "BookValueOverride".
2. In the srcTrans worksheet column Y there is CBI value that means "Cost Basis Impact". If Y column is not visible, you might need to unhide it (select columns W to Z, right mouse click and then choose Unhite". Please check value for that column for your transaction - if that value is correct, then you do not need to override anything. But usually it is safe to provide value there for SymbolTransferIn transaction as it might represent value not at the transfer in date, but at the original buy date.