• filter:

Spinoff, stock split, and fractional share issues

  • Page :
  • 1
  • Text Only
  • Search this Topic »
Voting History
rated:
Any strategies for easily managing spinoff, stock split, and fractional share issues?
A small purchase of HP stock several years ago has filled up my portfolio with lots of small stocks. In this case:
HPW -> HPQ + HPE + Agilent + VRGY + KEYS + (the latest) DXC.

Keeping track of the history of these stocks and basis is bad enough ...
but every split involves the award of some fractional shares which are typically sold automatically to provide small "capital gains".
... which in turn creates 1099B and Schedule D entries for small amounts.

Member Summary
Staff Summary
Thanks for visiting FatWallet.com. Join for free to remove this ad.

rated:
And on its way later this year: MCRO.L

rated:
Aren't these all covered securities, with the basis tracked by your brokerage? I'm riding this train as well but Schwab is tracking all the basis for me. They haven't updated HPE and DXC basis yet to account for the DXC spinoff yet. It may take up to 45 days. Once it does though I think I'll exit all of these positions and just buy more index funds.

rated:
InTrouble said:   Aren't these all covered securities, with the basis tracked by your brokerage? I'm riding this train as well but Schwab is tracking all the basis for me. They haven't updated HPE and DXC basis yet to account for the DXC spinoff yet. It may take up to 45 days. Once it does though I think I'll exit all of these positions and just buy more index funds.
  
The stock itself made its way to E-trade through an acquistion - the basis info got dropped somewhere along the way.

rated:
If  a company does something weird like this, especially if it's for a bigger amount than just a fraction of a share, you should really double check your broker's tax reporting on their 1099.  It would not be out of the question for them to mangle the basis allocation or even revert it to zero on some piece making it look like the whole amount was profit when it clearly wasn't.  

rated:
Not sure what you are hoping to hear. Easiest way to manage would be to sell and not worry about further splits.

rated:
BrianGa said:   Not sure what you are hoping to hear. Easiest way to manage would be to sell and not worry about further splits.
  
Even for selling all of them together, ideally, you should compute the right basis for each stock and figure out gain vs. loss. I guess I'll take a short-cut and report the entire basis against one stock and use basis 0.00 for the others.

rated:
After ending up with fractional shares from reverse splits, dividend distributions and what not, I chose to change the settings in my accounts to cash in lieu of automatic reinvested dividends. That might not have been a complete solution, but its a bit of a help.

rated:
It's a pain in the a** and there is no good way around it.  Quicken does a fairly decent job of handling these transactions, but only if you had entered the original basis at the beginning.  Then when a spin-off occurs, it reallocates the appropriate portion of the basis from the existing shares to the new shares.  Same for the cash in lieu for the fractional shares.

Related - I recently sold/closed out some shares that I'd had in a dividend reinvestment plan, and the transfer agent handling the sale sent me 45 1099's (in individual envelopes), one corresponding to every reinvested quarterly dividend for more than the last ten years!

rated:
fidelity does a good job of tracking these as well. to avoid commissions, move to Merrill Edge a part of your portfolio and get free trades.

rated:
Agilent spinoff from HP was in 1999, so your HP purchase must have been more than "several years ago".    
 

rated:
HP is nothing, try doing something that goes back to original AT&T stock...

I wish I had made a tree diagram to begin with, every X years I have to try and find my calculations and try to not reinvent the wheel.

  • Quick Reply:  Have something quick to contribute? Just reply below and you're done! hide Quick Reply
     
    Click here for full-featured reply.


Disclaimer: By providing links to other sites, FatWallet.com does not guarantee, approve or endorse the information or products available at these sites, nor does a link indicate any association with or endorsement by the linked site to FatWallet.com.

Thanks for visiting FatWallet.com. Join for free to remove this ad.

While FatWallet makes every effort to post correct information, offers are subject to change without notice.
Some exclusions may apply based upon merchant policies.
© 1999-2017