There have been quite a few spinoffs affecting many of your investment clubs already this year. You'll find many of them on this list:

Cost Basis Adjustment Events

When a company spins off another one in a non-taxable transaction, the cost basis of the parent company has to be allocated between the two resulting companies.

Here is more about what you need to know to make sure your accounting records are correct after a spinoff occurs.

Allocating Cost Basis In A Spinoff

Laurie Frederiksen
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