How to record stock merger?


B

Bob

Can someone tell me how to record in MSMoney a stock merger while
maintaining integrity of the tax records?

In this case I currently own shares of CNE which was recently acquired by
PWE, giving me .515 shares of PWE for each share of CNE in a tax-free
exchange.

Option #1 - I could record a sale and purchase, but that would show taxable
income where none exists

Option #2 - I could record remove shares and add shares, but then the PWE
shares would show with zero cost basis and overstate income when the shares
are eventually sold

Does someone have an option #3? Or can tell me how to adjust the cost basis
for shares added?

- Bob
 
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C

Cal Learner-- MVP

Can someone tell me how to record in MSMoney a stock merger while
maintaining integrity of the tax records?

In this case I currently own shares of CNE which was recently acquired by
PWE, giving me .515 shares of PWE for each share of CNE in a tax-free
exchange.

Option #1 - I could record a sale and purchase, but that would show taxable
income where none exists

Option #2 - I could record remove shares and add shares, but then the PWE
shares would show with zero cost basis and overstate income when the shares
are eventually sold

Does someone have an option #3? Or can tell me how to adjust the cost basis
for shares added?

Here is how you can do it if you did not hold both stocks
involved in the merger. This way works for all versions of Money.

Go to the Details for the old stock, CNE. Change the symbol, rename
the stock to PWE, add an appropriate comment, and do an appropriate
split to achieve the ratio you want. Enter a suitable ratio of
integers such as a 515 for 1000 split.

Keep an extra copy/backup in case you want to undo something.
 
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B

Bob

That worked - thanks, Cal.

- Bob


Cal Learner-- MVP said:
Here is how you can do it if you did not hold both stocks
involved in the merger. This way works for all versions of Money.

Go to the Details for the old stock, CNE. Change the symbol, rename
the stock to PWE, add an appropriate comment, and do an appropriate
split to achieve the ratio you want. Enter a suitable ratio of
integers such as a 515 for 1000 split.

Keep an extra copy/backup in case you want to undo something.
 

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