Cost basis for stocks that split twice



There is an issue on Intuit's support site that says that Quicken
screws up the cost basis of a stock that goes through multiple
splits. They aren't going to fix it and say that you have to
record the cost basis manually.

Does anyone know how to go about doing that, exactly?


P.S. pls reply to the group, not by email.



R. C. White

Hi, Eric.

Q has always handled splits correctly for me, including Wal*Mart, Dell,
Microsoft, etc., which have had several successive splits each. Of course,
you must be meticulous in recording the transactions in chronological order.
Watch out especially for a split, followed by a sale, then another split of
the remaining shares. Or a split, then a purchase of more shares, then
another split. Keeping the separate bases for the separate lots can be a

Or are you talking about multiple simultaneous spin-offs, like many users
had to deal with a year or so ago? That is, one parent spun off two
subsidiaries at once. (Was it AT&T Wireless?) We were able to get Q to
handle the basis properly only by treating it as successive spin-offs,
making sure to include fair market values of both the parent and one new
company when calculating the new basis for the other new company. I don't
recall the exact steps, but it's all in the archives, I'm sure.

You do have to watch out for terminology in Q's Easy Actions. They ask us
to input the answer to get the answer. :>( For example, Q2004 asks for
"Cost per old share (post spin-off)", and for "Cost per new share". What we
really need to enter is the Fair Market Value of the shares, immediately
after the transaction, NOT what those shares cost us back when we bought
them. The Help file helps very little; it does hint that we are looking for
market values ("closing price per share of your original security, on the
date of the spin-off"), but repeats the definition of "Cost per new share"
as "the cost per share of the new security...on the date of the spin-off".
What we really need here is the market value immediately after the deal,
which may have been the opening trade on the day after the spin-off. The
best source for these values is usually the statements made by the company a
few days after the transaction; we usually can find these on the company's
website under "investor relations".





No, it really is a problem with multiple splits -- perhaps it's only
in quicken for the Mac?

Here is the bug report from intuit's web site:

Cost Basis reporting inflated (may be doubled or tripled depending on
split values) when there are two stock splits on same security



Why is my Cost Basis reporting inflated (may be doubled or tripled
depending on the split values) when there are two stock splits on the
same security?


Intuit is aware of this issue. There is no resolution at this time.
Should this status change, additional information will be made
available on this Web site.



To avoid this issue, the cost basis must be manually calculated.

If there are no closed lots for this security, then the value for Cost
Basis in the Portfolio View should be correct.



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