Doubt about spin out

RVB

Hi Vidas,

first of all, congrats about PS. It is a really good tool.

I am having difficulty in this transaction.

Bought Share A - 6 units @ 82.7€;
From stock A, there was a spin out of Share B, where each 5 shares A would represent 2 of shares B, plus cash.
(5 share A -> 2 share B + €):

the day before transfer - share A price 93.3€
the day of transfer - share A price 69€ and share B 52.95€ (received 22.68€ in cash)
how can i aproach this in PS?


Buy A 6 82.70
SymbolTransferOut A 6 93,30
SymbolTransferIn A 6 69,00
SymbolTransferIn B 2 52,95
DivTA B 2 22.68

Thanks for the help

VidasMatelis

Hi,

There are few small issues with your calculation, but basically you have to address cost basis for new symbol transfer in's and also address the fact that total value of SymbolTransferOut is not equal to total value of symbolTransferIn + Cash Dividends.

You did SymbolTransferOut A 6 shares for 93.30 total 559.80.
But total SymbolTransferIn is 6x69+2x52.95=519.90, plus 22.68 = 542.58, so you are short of 559.80-542.58=17.22
I would expect total values to match.

Second - for SymbolTransferIn operations you want to adjust cost basis using CostBasisOverride column.
The original price you paid for your 6 shares was 496.20 and you want to make sure that for your transferred in shares that cost basis stays the same.
Here are calculations that I made for your cost basis:



I assumed that your cash payout did not change cost basis, but it is possible, that cash payout was actually "ReturnOfCapital", then you would have to change TransType from DivTA to ReturnOfCapital - so please double check that.