How Can I Record Motorola Stock Reverse Split into 2 New Companies?

Motorola stock reverse split itself into two companies: my 692.95 shares of MOT became 98.5 shares of MSI and 86.5 shares of MMI. How do I go about recording such a reverse split? Or must I "sell" all my shares of MOT & purchase the appropriate shares of the two new companies, which will work, but also set up false tax considerations. Thanks for any help.
  • Let me correct the facts related to Motorola. Apparently my 692.95 shares of MOT became 98.5 shares of MSI as a result of a 1-7 reverse stock split. The 86.5 shares of MMI result from a spin off. Now, I still could use some help in how to record the 1-7 reverse split resulting in one new company and separately how to record the spin off resulting in the second new company. Again, thx in advance.
  • They were both spin-offs. MOT turned into MMI at 1 for 8  and MSI at 1 for 7.  I also want to know how to deal with this in Quickens. Maybe this isn't called a spin-off but thar's what they called it.
  • Ed's correct...we still need some help on how to use Quicken to record these actions. Anyone out there? For the time being, I recorded MOT to MSI as a stock split, and "added" MMI. At least as a stop-gap measure, I am able to download MSI and MMI results daily without regard to the tax implications.
  • Need your help also on this topic:
    Let's assume I bought 100 shares of MOT for $50
    1) How many MMI and MSI shares I will get ? Any additional cash ?
    2) What will be the recorded bought price for each of my new MMI and MSI shares for tax calculation ?
    Many, many thanks,
    zdror
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Thank you for the info, miklk.  Here is a link to the MSI presented pdf file:
http://files.shareholder.com/downloads/ABEA-2FO3VV/1119424856x0x433969/A1D1332E-B840-43AC-8A90-C73CD8FD0043/MSI_MMI_Tax_Basis_Allocation_FINAL_-_January_2011.pdf

Based on that information, I would proceed as follows.  This is slightly more complicated that I first alluded to because I had forgotten certain aspects of Quicken's Corporate Spinoff Transaction I dislike.

Corporate Spinoff transaction
Transaction Date = 1/4/2011
Security Name = Motorola (or however you have it named)
New Company = Motorola Mobility
New Shares issued = 0.125
Cost per old share = 5.33
Cost per new share = 31.17
Taxable Spinoff box should NOT be checked

When this macro-transaction is entered into Quicken, the program will create a RtrnCap transaction and a Buy Shares transaction dated to match for each time you acquired MOT shares.  I do not like that timing and begin a series of adjustments to overcome that sequence.

Adjustment 1:  Redate each RtrnCap and Buy Shares transaction to 1/4/2011.

The buy transactions now show you are acquiring shares of MMI on 1/4/2011.  That is not accurate.  As far as the IRS is concerned, you acquired the shares when you acquired the original MOT shares.

Adjustment 2:  Edit the Buy Shares of Motorola Mobility to be Add Shares transactions with the Acquisition date matching the date the related shares of MOT were acquired.

The RtrnCap proceeds had been used to buy the shares of MMI.  There is no longer a MMI buy so the RtrnCap money also must go away.   

(It is often best to redate and revise the Quicken-generated Buy in one step to keep the date information at hand during the process.)

Adjustment 3:  Edit the RtrnCap transaction by adding in a transfer Account that is the same as the originating account (the account you are entering these transactions).  

At this point, it is worthwhile to make a check.  I do this by looking at the cost basis before and after.  On 1/3/2011, the portfolio view should show your cost bais for MOT.  For 1/4/2011, the total cost basis of MOT and MMI should equal that prior basis and be in the correct ratio of about 58% to 42%.  

On to the reverse split and name change.  After due consideration, I would probably enter this as a Corporate Acquitition:
Transaction date = Jan 4, 2011
Company Acquired = Motorola
Acquiring Company = Motorola Solutions
New Shares Issued  = 0.142857
Price per share = 39.77 (closing price on 1/4/2011)

You will find this enters a Remove Shares transactions (for MOT) and one or more Add Shares transactions (for MSI) corresponmding to each lot od MOT you had held.  You may find that the ratio is not sufficiently accurate.  For example, in my test file, I started with 56 shares of MOT and ended with 7.999992 shares of MSI.  To correct this, simply edit the Add Shares transaction accordingly.  I changed the 7.99992 to 8.  

You can improve Quicken's math by choosing the StkSplit apprach which allows you to specify the split was 1 new share for every 7 old shares.

It is now appropriate to recheck the portfolio view.  You should now find that the cost basis for Motorola Solutions for 1/4/2011 reflects what had been the cost basis for Motorola.  

It is also reasonable to check you security information.  Ctrl-Y will pull up the security list and you can sheck that MMI and MSI are bothe suffieciently defined.  

Finally, it is possible that through this process, you are now showing fractional shares of either MMI or MSI.  In all likelihood, you broker will be required to sell those fractional shares and you will receive cash-in-lieu for those partial shares.  Those should be entered into Quicken as Sells of the corresponding security.  Because you have guided Quicken to the proper cost basis, the proper capital gains or losses will be relfected for your 2011 tax data.  

HTH
  • Thanks so much for taking the time to post this.
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According to the information I quickly identified online:
- Motorola Mobility distribution ratio will be 1 share for every 8 shares of Motorola common stock
- Motorola, Inc. reverse stock split ratio will be 1 share for every 7 shares of Motorola common stock
- Motorola, Inc. to change name to Motorola Solutions, Inc.
(http://files.shareholder.com/downloads/ABEA-58XVPR/1117809915x0x426051/EBEF72D8-476F-4DB5-9873-41424CC7821F/MOT_News_2010_11_30_Press_Releases.pdf)

To do that in Quicken,
1)  I would enter a Corporate Spinoff MOT spinning of MMI at 1 for 8.  Where Quicken prompts for "Cost per share", it is really after the current market value immediately after the spinoff for the two securities.  With those valuations and the share ratio, Quicken will determine how much of the cost basis stays with the original company and how much goes to the spinoff.  

2)  Then I would enter a StkSplit of MOT at 1 New share for 7 old shares

3)  Then, I would (or might) enter a Corporate Name Change with associated ticker change MOT to MSI.
Alternative to the Name change would be a Corporate Acquisition MSI acquiring MOT 1:1.  I would also consider the Corporate Acquisition at 1:7 thereby incorporating the reverse split as well.  My hesitation with the name change is that it changes MOT to MSI throughout my entire history.  Sometimes I am willing to accept that (that I bought MSI in 1962 when it did not exist); other times I find that annoying.

The other likely step to be involved would be selling of fractional shares for the amount of Cash-in-lieu received.  

I generally find it worthwhile to work these transactions out on paper or in Excel first, so that I can then review the final result Quicken leaves me with and be more confident of the end results.  

[Caveat:  I am not a lot of things, so do your own due diligence to assess the correctness for your situation.]

My other suggestion is to wait a few days and see if MOT/MSI/MMI put out an explanation and sample calculation with defensible shares valuations all around.  

HTH
  • Good start for an answer....but cost per old share (post spinoff), cost per new share and etc are needed to calculate the stock holder's basis and  finalize Quicken transactions....Does anyone have this info?
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Cost per old shares(MOT) $9.11,  Cost per new shares( spin-off of Motorola Mobility[MMI] $30.24, Cost per new shares of reverse stock split $37.48, then a name change to Motorola Solutions, Inc(MSI)
  • I am a little surprised MOT/MMI/MSI have not posted further information on this so far.  Oh, well ...

    Ed40 wrote:  "Cost per old shares(MOT) $9.11, Cost per new shares( spin-off of Motorola Mobility[MMI] $30.24, Cost per new shares of reverse stock split $37.48, then a name change to Motorola Solutions, Inc(MSI)"

    From Yahoo  finance, I see the following
    MMI ________ Open ___ Hi ______ Lo ___Close
    Jan 3, 2011 __ 29.50 __ 30.86 __ 29.14 __ 30.24
    Jan 4, 2011 __ 31.17 __ 33.45 __ 31.17 __ 33.12

    MSI ________ Open ___ Hi ____ Lo __Close
    Jan 3, 2011 ___ 9.10 __ 9.23 __ 9.08 __ 9.11
    Jan 4, 2011 __ 37.30 _  39.99 _  37.12 _ 39.77 (after reverse split)
    _____________ 5.33 __ 5.71 __ 5.30 __ 5.68  (adjust to before split)

    What Quicken needs to do in the Corporate spinoff is allocate cost basis (per lot) to the continuing company and to the spinoff.  This is done consistent with IRS guidelines by determining the value of the two parts and splitting the cost basis in the same ratio.  Thus the value of MMI after the spinoff was about $32 per share and the value of MSI was about $5.50 per share.  (I believe the IRS may identify some specific ways to determine such values such as opening price, closing price, some average price, and so on.  Since I am not your tax advisor, (or anyone elses), I will leave out that fine point at this time.)  But remember you have only 1/8 as many MMI shares as you had of the MSI shares.  Thus for one share of MOT you know have on Jan 4 1 x $5.50 + 1/8 x $32 = $9.50 total.  Of the 5.50/9.50 = 57.89% is in MSI and 4/9.50 = 42.11% is in MMI.  That is how Quicken should distibute the cost basis.  That is how it will use the cost figures you provide and the share ratio you provide.  

    I would not use data from January 3 for that computation.  

    HTH
  • I too need to record this transaction in Quicken properly, but I am not a CPA. Can anyone post a clear formula, say based on 100 shares, that those of us who may not be Economics majors can use to create the correct cost basis? Many thanks.
  • trhe cost basis info is on the motorola web site now. Part of it is below:

    One possible approach to determining the fair market value of the Motorola Solutions common stock and
    the Motorola Mobility common stock may be to use (i) the New York Stock Exchange opening price per
    share of Motorola Solutions common stock on January 4, 2011, which was $37.30, and (ii) the New York
    Stock Exchange opening price per share of Motorola Mobility common stock on January 4, 2011, which
    was $31.17. As MINC shareholders received one share of Motorola Mobility common stock for each
    eight shares of MINC common stock, you would divide the $31.17 price by 8 ($3.90) to arrive at a value
    that takes the Distribution ratio into account. Similarly, MINC completed a 1-for-7 Reverse Stock Split
    such that each seven shares of MINC common stock resulted in one share of Motorola Solutions. As a
    result you would divide the $37.30 price by seven ($5.33) to arrive at a value that takes the Reverse Stock
    Split ratio into account.
    Based on such amounts, the relative value of the shares of Motorola Solutions common stock and the
    Motorola Mobility common stock is as follows:
    Motorola Solutions: $5.33 = 57.75%
    $3.90 + $5.33
    Motorola Mobility: $3.90 = 42.25%
    $3.90 + $5.33
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Several good answers have been posted...  BUT!!!

My Schwab account Unrealized Gain/Loss page shows the basis of *all* the new shares of MMI as ZERO, and 100% of my original basis in MSI (formerly MOT). I talked to a Schwab broker tonight and he suggested I talk to their cost basis department tomorrow during regular business hours.

After looking at the sequence of events on my Schwab History page, I did a 1 MMI share split for every 8 MOT shares as of 1/3/2011, and reverse calculated the cash-in-lieu for the fractional share of MMI (as a fractional share sold). Then I did a 1 MSI share split for every 7 MOT shares, and again reverse calculated the cash-in-lieu for the fractional share of MSI (also as a fractional share sold). I then did a Corporate Name Change from MOT to MSI, and thought I'd be done. My register rang for the Return of Capital of all the reinvested dividends, and showed new whole shares of MMI and MSI and zero MOT.

HOWEVER, according to Quicken, my basis in MMI was only 31.25% (not the 41.37% I'd manually estimated, and my basis in MSI was 68.75% (not the 58.63% I'd manually estimated). Neither of these percentages (Quicken or my manual estimate) was what my Schwab basis was showing. I ended up having to restore my most recent backup to clear out all the Return of Capital transactions dating back to 2000 and decided I'd do some checking around before I started over. The Schwab broker told me their computers reflect a ZERO basis in the MMI spinoff and 100% of the orginal basis in the new MSI.

I'm not a tax person and I'm confused as hell. I then thought I'd try to just edit both securities to change the basis in MMI to zero and change the basis in MSI to my original 100% of MOT, but I was not able to figure out how to do it in Quicken. Since Schwab would be providing IRS their basis information in the event I sold either of the new stocks, I didn't want to mess up my Quicken 2011 registers for these two stock symbols.

So I guess I'll just sit back and see if someone smarter than me comes up with a better alternative.  But I thought I'd share that information with y'all since the 'normal' split/spinoff calculations may not be applicable in this instance. Perhaps it's the way Motorola spun off MMI and morphed into MSI.

Good luck!
  • bobh007:  You post raises a couple of points I previously failed to raise or downplayed.  Almost every corporate spinoff applies on a per-lot basis.  The IRS expects you to treat each lot independently and that is the way Quicken handles.  If, as in your case, the investor has been in a dividend reinvestment plan, that can become a lot of added transactions.  Simply because of that, the user should

    make a backup before starting this process!!!

    Glad to hear you were ahead of the game on that.  

    Processing through the Corporate Spinoff transaction and then making the adjustments I suggest (if so desired, they are not 'required') is one way to attack the spinoff.  One can also simply enter directly the RtrnCapX and Add Shares transactions if you are willing to do the calculations of basis and recording of the acquistion dates, and all the typing.

    In addition to talking to the Schwab folk about the cost basis value, you should also discuss with them the applicable acquisition dates for the MMI holdings.  

    You stated "Since Schwab would be providing IRS their basis information ...".  In the past, the brokerages have only been required to give the IRS the gross proceeds from sales of securities, not the basis or acquisition date.  That is changing, but I have not double checked the timing for the new rules yet, but I believe is is for sales of securities purchased after 1/1/11, so this current spinoff should not be affected (consult your tax adviser and broker).  As those new rules become implemented, it will be all that more important for the user/investor to keep track of the broker to make sure the two parties are in agreement.  I believe you will find Schwab correcting their $0 basis for your MMI.  Brokerages make mistakes too.  Do not take their answers or data as final and accurate.
  • q.lurker, you were right on about Schwab adjusting my basis. It took a couple of calls, and they indicated they were awaiting input from MINC/MMI/MSI. Last night they updated my basis for the full shares of MMI/MSI which I still hold, as well as for the fractional shares that were sold.

    They chose to average the high/low prices for MMI/MSI (as you noted, one of a number of possible methods, which resulted in a 42.3056% allocation to MMI and a 57.6944% allocation to MSI. I put all the numbers into Excel and their post-spinoff, name change, fractional selloff ends up being within one penny of my excel calculation (over an $11,453 total basis), good enough for the IRS.

    I printed out your suggestions for entering the transactions into Quicken, and yes, I did reinvest quarterly dividends (when MOT was paying them) between July 2000 and January 2009. I'll backup again, and see if my data entry results in a good recalculation.

    Thanks for the very helpful tip about going back in time to modify the original entries to get the Quicken basis to adjust.

    Regards.....

    Bob H
  • I tried to perform the reverse split and spin-off for the shares I have acquired through an Employee Stock Purchase Plan.  Unfortunately, Quicken will not allow me to perform these transactions on shares acquired in that manner.  Any ideas?
  • Dave,
    Do a 1 to 8 spin-0ff from Motorola to MMI and then a 1 to 7 reverse split in Motorola. After that, do a name change of Motorola to Motorola Solutions (MSI).
  • dave07731:  ESPP's have their own special rules within Quicken and before the IRS.  I suggest you repost your question as a new question with emphasis and information on the ESPP and noting you have seen (and tried) this discussion.  

    HTH
  • I have a dividend reinvestment account so this makes for a whole lot of work.  Can you tell me what is the bare minimum that I need to do in order to set up the accounts and have a pretty good idea of what the cost basis is?  Bottom line, do I really need to make the adjustments 1, 2, and 3?
  • TCMDoc wrote:  "Can you tell me what is the bare minimum that I need to do in order to set up the accounts and have a pretty good idea of what the cost basis is? Bottom line, do I really need to make the adjustments 1, 2, and 3?"

    Bare minimum is an individual decision, but no, you do not have to make the adjustments.  The off-the-shelf Quicken generated Corporate spinoff may give you the basics that might get you through.  My issues with it are two-fold:  1) It will appear that you have owned Motorola Mobility since your original purchase of Motorola.  It will also show you owning full value of Motorola throughout that period (original purchase through spinoff) thus overstating your net worth.  2)  If you have cause to re-examine your cap gains from any sales of MOT during that period, those gains will be wrong because they will be re-computed using the post-spinoff cost basis of MOT before the spinoff actually took place.  

    I believe (but have not confirmed) that your cost basis after the spinoff is likely correct for each lot of MOT you held if you just enter the basic spinoff with no adjustments.  Particularly if this has been a traded security, it is possible for Quicken to get it wrong.  Before proceeding on that no-adjustment basis, I would want to prove the accuracy to myself.  I would likely recreate the computation process in Excel to gain confidence in the Quicken values.  

    If you rely on this information for tax purposes (even if only as confirmation of what your broker / DRIP administrator reports), I would recommend you bite the bullet.  If you intend to rely on this information for trading decisions (lot selection), I would recommend you bite the bullet.  If you only need ballpark correctness and are not concerned about your historical positions and not likely to re-evaluate MOT sales and cap gains prior to the spinoff, you may be ok sipping the adjustments.  

    The choice is all yours.
  • These answers are not easy to follow and this program is far to complicated. Microsoft Money was far easier to use. Transactions were within each security.
  • q.lurker
    Thanks for your comments.  I've completed everything thru Adjustment 1 so I might as well go all the way.  These may be a stupid questions but once you redate everything, how do you know by looking at  Quicken alone, "the acquisition date matching the date the related shares of MOT were acquired"?  This is where I am stumped.   In addition, I don't understand what a "transfer account" is and how to set it up.  Can you give me some guidance on these matters?
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I took the advice and built a spreadsheet to contain my numbers. Unfortunately there are 20 years of reinvestment transaction behind these numbers. Here are my numbers.

Cost basis of MOT $1,541.34
Shares of MOT 99.6463

Symbol                                                    MMI                    MSI
Cost Basis Split                                0.4225                0.5775
New Cost Basis                                $651.22                 $890.12         $1,541.34
Cost Basis per Old Share               $6.535277        $8.932834
New Shares per Old Share       0.125000         0.142571
New Shares                                        12.455788        14.206673
Cost Basis per New Share       $52.282212       $62.655335
Shares Kept                                          12.00                  14.00
Shares "Sold"                                0.455788         0.206673
Cash Received                                $14.72                   $9.41            $24.13
Revised Cost Basis                        $627.39             $877.17 $1,504.56
Loss for 2011 Taxes                          $9.11                  $3.54           $12.65

Rather than go through the trial and error process, could someone inform me of the sequence to enter the information and what should be entered at each step. My goals are simple: get the cost basis and shares right.

Thanks.
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    First: Corporate Spin-off: (Security name: Motorola ; New company: Motorola Mobility Hlds (MMI); New share issued: 0.125; Cost per old share: $9.11; Cost per new share: $31.17) Done
    Second: Stock Split; (Security name: Motorola; New share: 1; Old share: 7; Price after split: $37.30. Done
    Third: Corporate name change: Security name: Motorola; New Security name: Motorola Inc. Done
    Forth: Sell Fractional shares of Motorola Inc (MSI) and Motorola Mobility Hlds (MMI)
    Good Luck!
    • TCMDoc:  I should have pointed out the advantage of doing Adjustments 1 and 2 simultaneously so that you have the date figures at hand when you are changing the transactions from Buys to Adds.  Indeed, I have editted my post to that effect.  I would suggest you print out a list of Buy and ReinvDiv transactions for MOT and work from that for editting in the proper acquisition dates.

      Regarding the Transfer Account, on the RtrnCap form is a field for specifying where the cash from the RtrnCap transaction is suppose to be depositted.  If the field is left blank, the cash goes into the brokerage account, [Brokerage] or however you have it named, for that RtrnCap transaction as cash to be spent.  If you specify a different account (like your checking account, [Checking], the cash goes into that account as cash to be spent.  But if you specify the brokerage account [Brokerage] as the recipient of the cash rather than leaving it blank, then the cash disappears into thin air which is what we need to have happen in this case.

      HTH
    • Polya, Thanks for the response. I tried your suggestions and all seemed to work. One notable item though is that the cost basis was split 30% to MMI and 70% to MSI. I have no idea how this split percent was determined. I would have preferred 42.25% and 57.75% respectively per the Motorola letter, but I am willing to live with it.

      Thanks again.
    • jcorcor2:  First, I will comment that you appear to have an error in your spreadsheet data.  The ratio for the 1:7 split should be 0.1428571 rather than the 0.142571 you have shown and apparently used.  

      "Rather than go through the trial and error process, could someone inform me of the sequence to enter the information and what should be entered at each step. My goals are simple: get the cost basis and shares right."

      Caveat:  I believe your goals are too simple.  I believe you should want that data right for each lot of shares that you own.  If before you had 80+ lots of MOT, now you have 80+ lots of MMI and 80+ lots of MSI.  At such time as you start disposing of these, to get the tax info correct, you need the data on a by-lot basis.  In my prior posts on this spinoff, I have tried to explain how to best accomplish that.

      If you truly are going to be satisfied with treating this as one lot, you can enter the following trasnactions in the Quicken account holding the MOT shares

      1)  Remove Shares -
      --Date = 1/4/2010
      --Security = Motorola (MOT, however you have it named)
      --Shares = 99.6463 (all your shares)
      --Memo = (as you see fit)

      2) Add Shares
      --Date = 1/4/2011
      --Security = Motorola Mobility
      --Number of shares = 12.455788
      --Total Cost = $651.22
      --Date Acquired = (whatever date makes the most sense to you)
      --Memo = (as you see fit)

      3) Add Shares
      --Date = 1/4/2011
      --Security = Motorola Solutions
      --Number of shares = 14.235186
      --Total Cost = $890.12
      --Date Acquired = (whatever date makes the most sense to you)
      --Memo = (as you see fit)

      4) Sell Shares
      --Date = 1/4/2011 (could vary depending on info from your DRP administrator)
      --Security = Motorola Mobility
      --Shares = 0.455788
      --Total Sale = 14.72
      --Memo = (as you see fit)

      5) Sell Shares
      --Date = 1/4/2011 (could vary depending on info from your DRP administrator)
      --Security = Motorola Solutions
      --Shares = 0.235186
      --Total Sale = 9.41
      --Memo = (as you see fit)

      Again, I believe this is an overly simplistic approach that could in the future cause issues or confusion.
      HTH
    • q.lurker,  

      THANK YOU for your expert guidance on this.  I consider myself a pretty savvy user of Quicken, but I couldn't have properly executed this without the benefit of your insight & experience.  Many thanks!

      Scott M.
    • <p>I appreciate everyones input on this CF Motorola gave us but can anyone offer a solution that does not require a degree in finance? How about you, Quicken? Help us out here.</p><p>Thanks much to all!</p>
    • q.lurker,

      I am confused on how to enter this in QB.  I followed your directions

      Corporate Spinoff transaction
      Transaction Date = 1/4/2011
      Security Name = Motorola (or however you have it named)
      New Company = Motorola Mobility
      New Shares issued = 0.125
      Cost per old share = 5.33
      Cost per new share = 31.17
      Taxable Spinoff box should NOT be checked

      After doing this I end up with 2.857143 shares of Motorola Mobility when I should have 20.  I used the exact same numbers as you did above and I am not sure why this is happening.  Any help?
    • Griff1324 wrote:  "I am confused on how to enter this in QB. "

      If you are asking about QuickBook, I have no experience with that program.

      The number of shares you are reporting, 2.857143 is 1/7 of 20.  That suggests you may have entered the second part of the transaction improperly or are confusing which shares and companies are which.  That can be easy to do.  

      How many shares of MOT did you have (according to Quicken) on 1/32011?  Were these in one lot or multiple lots?  It is often good to work out the datails in Excel or on paper first, so ytou can track your progress toward the right answer.

      Likely you will need to delete all the transactions that were just entered or revert to a backup made just prior to your attempt at this spinoff/rename.
    • q.lurker,

      I had a total of 160 shares on 1/3/2011.  These shares were aquired over 2 different purchases.  I am still confused as what I am doing wrong when I follow your example.
    • Griff1324:  If you want to check yourself and your process, you might create a test file to experiment and practice with.  Start with a single brokerage account and put in your two MOT purchases.  Do not worry about any subsequent dividends.  You have two transactions in the account.  Then you can walk through the steps.  

      Repeating from above:  
      --Corporate Spinoff transaction
      --Transaction Date = 1/4/2011
      --Security Name = Motorola (or however you have it named)
      --New Company = Motorola Mobility
      --New Shares issued = 0.125
      --Cost per old share = 5.33
      --Cost per new share = 31.17
      --Taxable Spinoff box should NOT be checked

      --When this macro-transaction is entered into Quicken, the program will create a RtrnCap transaction and a Buy Shares transaction dated to match for each time you acquired MOT shares. I do not like that timing and begin a series of adjustments to overcome that sequence.

      Now you should have 6 transactions in the account and 160 shares of MOT and 20 shares of MMI with MOT having about 58% of its original basis and MMI about 42% of MOT's original basis.

      After making the adjustments, the same general current picture should apply but the dates will make more sense.  Now my suggestion was a Corporate Acquistion - MSI acquires your 160 shares of MOT in a 1:7 ratio leaving you with 22.857143 shares of MSI.   Did you make an error before in saying you had 2.28 shares, or did you have MSI acquire MMI rather than MOT?

      HTH
    • q.lurker,

      I got the share amounts squared away.  There was a split transaction that quicken automatically downloaded that was throwing off my numbers.  I deleted the downloaded transaction and ran through your outline and the amount of shares came out correct.  

      I do have another question for you.  You state the following adjustments:

      Adjustment 1: Redate each RtrnCap and Buy Shares transaction to 1/4/2011.

      Adjustment 2: Edit the Buy Shares of Motorola Mobility to be Add Shares transactions with the Acquisition date matching the date the related shares of MOT were acquired.

      I am a bit confused on this.  In your first adjustment you state to redate the RtmCap and Buy Shares transactions for Motorola Mobility to 1/4/2011.  However, in Admjustment 2 you state to change the Buy Shares for Motorola Mobility to be Add Shares with the transaction date to be that of the date the original Motorola shares were purchased.  

      Which date and transaction type (Buy or Added) should we use for the Motorola Mobility shares?
    • Griff1324 wrote:  "I am a bit confused on this. ...  However, in Adjustment 2 you state to change the Buy Shares for Motorola Mobility to be Add Shares with the transaction date ... "  

      I said to make the 'Acquitition Date' match the original purchase date.  An Add shares transaction has two dates associated with it:  transaction date - when the adding of the shares into your account takes place, and acquistion date - a date Quicken uses for applying capital gains tax considerations.  The transaction date you see clearly in the account transaction list.  The acquisition date you might only see when you edit the transaction.
    • q.lurker,

      OK, I am almost there!  Thank you for all your help so far.  You state:

      Adjustment 3: Edit the RtrnCap transaction by adding in a transfer Account that is the same as the originating account (the account you are entering these transactions).

      When I attempt to edit the RtrnCapX transactions, the Account and Transfer account are grayed out and cannot be changed.  The transfer account is showing my brokerage cash account and is causing my cash account to have a higher balance then it should.
    • Griff1324:  I do not use linked cash accounts, so I had not run across that nuance before.  Continuing on the same path, you have added cash to the brokerage cash account.  Now you need to dispose of it.  I would (likely) enter a expenditure for the same amount that has just been added and use the same account there for the 'category'; i.e., the category should be [Brokerage-Cash] or however you have the brokerage account named.  That works for me in my test file.
    • I've been putting this off, but I finally got my taxes out of the way and had some time to try this. I had some problems since my transactions all the way back to '98 weren't entirely correct, but after sorting through those and getting the account clean, I've run into another issue.

      I've done steps 1, 2 and 3 above. Thanks so much for that because there is NO WAY I would have figured that out! I verified the Cost Basis is in the proper ratio as pointed out prior the the Acquisition change.

      When I enter the Corporate Acquisition, I get several notifications that the amount is too large and I need to enter the transactions separately. Quicken continues to enter the rest of the transactions.

      The initial Shares Removed transaction shows the total number of MOT shares I had in the account prior to this procedure. The next transaction, Added shares shows:

      MSI 0.003386 shares of MSI @ 275757955.23 for an Inv Amt of 933,636.47 and a Cash Amt of -91,818,097.24...

      Something doesn't look quite right... This happens on the first three transactions and then it starts entering more normal looking transactions. I don't know if it's a clue or not, but I just noticed that the Cash Amt is the exact same for two of the transactions even though the shares and price are different...

      Because I can't seem to figure out the math behind the transactions, I can't even try to verify them. I can see that the OriginalShares/7 equals the new shares added, but I can't see how it's arriving at the Price per Share or the Total Cost.

      Any recommendations on how to proceed? I do have a backup, so I can start over, but I tried it once and ended up at the same point.

      Thanks.
    • I am finally getting to enter the Motorola split in Quicken.  
      Re: q.lurker post on 01/09/11 09:50 AM.
      "Adjustment 3: Edit the RtrnCap transaction by adding in a transfer Account that is the same as the originating account (the account you are entering these transactions)."
      I do not understand how to do this.  Quicken will not let me change the transfer account from the linked money market account.
      Thanks,
      SSM
    • ssmcam:  I realize this was an long and extended discussion.  The issue you cite was also raised by another user.  I addressed it in a 2/23/11 08:29 PM post just above your message.  

      Hope that helps.
    • Thanks q.lurker.  I tried to enter the transaction which you suggested as "Miscellaneous Expense" within the account holding Motorola.  The "category" box would not let me enter an account name, but only an expense category.  Any further thoughts?
      Thanks, SSM
    • ssmcam:  The idea was to enter in the cash-account side of the brokerage account, that is in the linked cash account - [Brokerage-Cash] or whatever you have it named, a cash expenditure transaction.  The Payee can be whatever you want, the amount is the same amount that was just transferrred into the account by the RtrnCap transaction, and the Category is [Brokerage-Cash], or whatever you named it.  

      You will get a warning that you are transferring cash to the same account to which you are recording the transaction.  That is what you want to do.  That recursive-style transaction makes the cash go away; not a good accounting policy, but useful in this situation.  It is the same character of transaction that Quicken uses when creating an opeining balance in a new account where the balance amount is not otherwise being accounted.
    • q.lurker: I've got now.  Thanks for your expert guidance.

      SSM
    Cancel
    I FINALLY GOT THIS DONE.  You can't enter the same sequence of event as described on the Motorla Mobility web site.  -  here's what worked for me.

    1.  Change the name of Motorola to Motorola Mobiltiy
    2. Use -   Enter Transaction/ Corporate Spin Off   - for Motorla Solutions
    3. Use - Enter Transaction / Stock Split   - for Motoroa Mobility

    Don't worry if your cost per share isn't what you expected.  Quicken does'nt allow you to specify which lots it is going to use when it figures cost basis.   It only allows you to adjust this when you actually sell.  Anyway the government has mandated that your broker will figure this out for you, and you probally won't have any say about it.

    I got errors from Quicken the first few times when I tried the spin off and the subsequent stock spit.  Something about not enough shares for the transaction.  I found that this sort of thing is all about rounding errors when it  tries to calculate this out.  I did a lot of trial and error before I got it zeroed in.  But I think if you just enter like one more share than what you actually need it will then work and you will be able to see in the portfolio view just what you need to do to.  Otherwise, you get the error and you're dead in water.

    Lots of luck, hope that helps.
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