How does the club record the June merger of Baxalta (BXLT) by Shire (SHPG)?
Frank J. Ginther on
We were paid $18.00 for each share of Baxalta plus .1482
shares of Shire for each Baxalta. As our club had 300
shares of Baxalta, we received $5,400 in cash, 44 shares of
Shire, and $88.31 for the .46 fractional share. How is this
transaction recorded in Bivio? Following your steps under
mergers, there was no query for entering the $18.00 payments
leaving our account short of the $5,400.
Laurie Frederiksen on
This was a taxable merger so it is not entered using the "Merger" button on the Accounting>Investments page.
Instead you will need to enter a sale of your Baxalta shares and then a purchase of the Shire shares you received.
You received $18.00 and .1482 shares of Shire for each of your BXLT shares. Their registration statement describes the merger consideration and the tax consequences of the merger to you:
Use the "Sold" button on the Accounting>Investments page to enter the sale amount. The total sale proceeds will be the sum of the cash you received and the Fair Market value of the 44.46 shares of Shire you received. The company has not yet provided any fair market value guidance, so a way to determine it is to use what your broker shows as the cost basis of each of your SHPG shares. Multiply the cost per share they show by 44.46, then add $5400. This will give you the total sale proceeds. The sale date is 6/3/2016
2. Purchase of SHPG
After you enter the sale, you will use the Bought button on the Accounting>Investments page to enter the purchase of the Shire shares. You need to enter a purchase for 44.46 shares at the total price you used in step 1. The purchase date is 6/3/2016.
3. Sale for Fractional Shire shares received
After you enter the purchase, you need to enter a sale of the fractional shares for the cash in lieu amount you received.
4. Verify bivio entries agree with Broker
When you are done, make sure all the details of your capital gains shown on the bivio Capital gain/loss report agree with what your broker shows on a Realized gain/loss report.
Because the company may still provide guidance on Fair market value (they have 60 days to post information, but they are a foreign company so they may not), there is a chance that the broker amounts you used in steps one and two will change. You should double check all your entries toward the end of the summer to see if the broker has updated anything. That way, you'll get your records in shape and won't have any surprises you'll need to work through at tax time!
Laurie Frederiksen Invest with your friends! www.bivio.com
We were paid $18.00 for each share of Baxalta plus .1482
shares of Shire for each Baxalta. As our club had 300
shares of Baxalta, we received $5,400 in cash, 44 shares of
Shire, and $88.31 for the .46 fractional share. How is this
transaction recorded in Bivio? Following your steps under
mergers, there was no query for entering the $18.00 payments
leaving our account short of the $5,400.
William Muhlke on
Do any Investment Clubs allow the "approval" of any voting matters via email by the club members? If so, what type of voting matters.
Date: Fri, 1 Jul 2016 10:14:19 -0400 From: laurie@bivio.biz Subject: Re: [club_cafe] How does the club record the June merger of Baxalta (BXLT) by Shire (SHPG)? To: club_cafe@bivio.com
This was a taxable merger so it is not entered using the "Merger" button on the Accounting>Investments page.
Instead you will need to enter a sale of your Baxalta shares and then a purchase of the Shire shares you received.
You received $18.00 and .1482 shares of Shire for each of your BXLT shares. Their registration statement describes the merger consideration and the tax consequences of the merger to you:
Use the "Sold" button on the Accounting>Investments page to enter the sale amount. The total sale proceeds will be the sum of the cash you received and the Fair Market value of the 44.46 shares of Shire you received. The company has not yet provided any fair market value guidance, so a way to determine it is to use what your broker shows as the cost basis of each of your SHPG shares. Multiply the cost per share they show by 44.46, then add $5400. This will give you the total sale proceeds. The sale date is 6/3/2016
2. Purchase of SHPG
After you enter the sale, you will use the Bought button on the Accounting>Investments page to enter the purchase of the Shire shares. You need to enter a purchase for 44.46 shares at the total price you used in step 1. The purchase date is 6/3/2016.
3. Sale for Fractional Shire shares received
After you enter the purchase, you need to enter a sale of the fractional shares for the cash in lieu amount you received.
4. Verify bivio entries agree with Broker
When you are done, make sure all the details of your capital gains shown on the bivio Capital gain/loss report agree with what your broker shows on a Realized gain/loss report.
Because the company may still provide guidance on Fair market value (they have 60 days to post information, but they are a foreign company so they may not), there is a chance that the broker amounts you used in steps one and two will change. You should double check all your entries toward the end of the summer to see if the broker has updated anything. That way, you'll get your records in shape and won't have any surprises you'll need to work through at tax time!
Laurie Frederiksen Invest with your friends! www.bivio.com
We were paid $18.00 for each share of Baxalta plus .1482
shares of Shire for each Baxalta. As our club had 300
shares of Baxalta, we received $5,400 in cash, 44 shares of
Shire, and $88.31 for the .46 fractional share. How is this
transaction recorded in Bivio? Following your steps under
mergers, there was no query for entering the $18.00 payments
leaving our account short of the $5,400.
Mike Jones on
We had an instance where a stock-watcher wanted to sell based on some issue and raised the prospect between meetings via e-mail. We had agreed in advance that in this type of situation, a majority of e-votes would rule but that we could not act until we had feedback from 100% of partners.
Mike Jones
Wall$treet Wannabees
From: William Muhlke <weomuhlke@hotmail.com> To: "club_cafe@bivio.com" <club_cafe@bivio.com> Sent: Friday, July 1, 2016 9:18 AM Subject: RE: [club_cafe] How does the club record the June merger of Baxalta (BXLT) by Shire (SHPG)?
Do any Investment Clubs allow the "approval" of any voting matters via email by the club members? If so, what type of voting matters.
Date: Fri, 1 Jul 2016 10:14:19 -0400 From: laurie@bivio.biz Subject: Re: [club_cafe] How does the club record the June merger of Baxalta (BXLT) by Shire (SHPG)? To: club_cafe@bivio.com
This was a taxable merger so it is not entered using the "Merger" button on the Accounting>Investments page.
Instead you will need to enter a sale of your Baxalta shares and then a purchase of the Shire shares you received.
You received $18.00 and .1482 shares of Shire for each of your BXLT shares. Their registration statement describes the merger consideration and the tax consequences of the merger to you:
Use the "Sold" button on the Accounting>Investments page to enter the sale amount. The total sale proceeds will be the sum of the cash you received and the Fair Market value of the 44.46 shares of Shire you received. The company has not yet provided any fair market value guidance, so a way to determine it is to use what your broker shows as the cost basis of each of your SHPG shares. Multiply the cost per share they show by 44.46, then add $5400. This will give you the total sale proceeds. The sale date is 6/3/2016
2. Purchase of SHPG
After you enter the sale, you will use the Bought button on the Accounting>Investments page to enter the purchase of the Shire shares. You need to enter a purchase for 44.46 shares at the total price you used in step 1. The purchase date is 6/3/2016.
3. Sale for Fractional Shire shares received
After you enter the purchase, you need to enter a sale of the fractional shares for the cash in lieu amount you received.
4. Verify bivio entries agree with Broker
When you are done, make sure all the details of your capital gains shown on the bivio Capital gain/loss report agree with what your broker shows on a Realized gain/loss report.
Because the company may still provide guidance on Fair market value (they have 60 days to post information, but they are a foreign company so they may not), there is a chance that the broker amounts you used in steps one and two will change. You should double check all your entries toward the end of the summer to see if the broker has updated anything. That way, you'll get your records in shape and won't have any surprises you'll need to work through at tax time!
Laurie Frederiksen Invest with your friends! www.bivio.com
We were paid $18.00 for each share of Baxalta plus .1482
shares of Shire for each Baxalta. As our club had 300
shares of Baxalta, we received $5,400 in cash, 44 shares of
Shire, and $88.31 for the .46 fractional share. How is this
transaction recorded in Bivio? Following your steps under
mergers, there was no query for entering the $18.00 payments
leaving our account short of the $5,400.
rice.j1969 on
My club does all of its discussions and voting by email. We have members in 6 states from the west coast to the east coast. I begin the discussion and send out the materials by email on Friday and at the minimum will close the discussion/vote on Wednesday evening and purchase/sell stock the next day unless the discussion is still going on. Sometimes it last 2 weeks. Majority vote for all members who participated in the discussion. A couple of times a year we meet by Skype but allow anyone to still vote by email if they can't make the meeting. The participation rate and time lapse is frustrating but it is what it is.
John Rice
ABODI Investment Club
On Friday, July 1, 2016 7:24 AM, William Muhlke <weomuhlke@hotmail.com> wrote:
Do any Investment Clubs allow the "approval" of any voting matters via email by the club members? If so, what type of voting matters.
Date: Fri, 1 Jul 2016 10:14:19 -0400 From: laurie@bivio.biz Subject: Re: [club_cafe] How does the club record the June merger of Baxalta (BXLT) by Shire (SHPG)? To: club_cafe@bivio.com
This was a taxable merger so it is not entered using the "Merger" button on the Accounting>Investments page.
Instead you will need to enter a sale of your Baxalta shares and then a purchase of the Shire shares you received.
You received $18.00 and .1482 shares of Shire for each of your BXLT shares. Their registration statement describes the merger consideration and the tax consequences of the merger to you:
Use the "Sold" button on the Accounting>Investments page to enter the sale amount. The total sale proceeds will be the sum of the cash you received and the Fair Market value of the 44.46 shares of Shire you received. The company has not yet provided any fair market value guidance, so a way to determine it is to use what your broker shows as the cost basis of each of your SHPG shares. Multiply the cost per share they show by 44.46, then add $5400. This will give you the total sale proceeds. The sale date is 6/3/2016
2. Purchase of SHPG
After you enter the sale, you will use the Bought button on the Accounting>Investments page to enter the purchase of the Shire shares. You need to enter a purchase for 44.46 shares at the total price you used in step 1. The purchase date is 6/3/2016.
3. Sale for Fractional Shire shares received
After you enter the purchase, you need to enter a sale of the fractional shares for the cash in lieu amount you received.
4. Verify bivio entries agree with Broker
When you are done, make sure all the details of your capital gains shown on the bivio Capital gain/loss report agree with what your broker shows on a Realized gain/loss report.
Because the company may still provide guidance on Fair market value (they have 60 days to post information, but they are a foreign company so they may not), there is a chance that the broker amounts you used in steps one and two will change. You should double check all your entries toward the end of the summer to see if the broker has updated anything. That way, you'll get your records in shape and won't have any surprises you'll need to work through at tax time!
Laurie Frederiksen Invest with your friends! www.bivio.com
We were paid $18.00 for each share of Baxalta plus .1482
shares of Shire for each Baxalta. As our club had 300
shares of Baxalta, we received $5,400 in cash, 44 shares of
Shire, and $88.31 for the .46 fractional share. How is this
transaction recorded in Bivio? Following your steps under
mergers, there was no query for entering the $18.00 payments
leaving our account short of the $5,400.