Stock Spin-off

David M. Owen on

Our club owns shares in Danaher Corp which recently spun-off
40 shares of Fortive. While our broker, Scottrade, is
showing this transaction in our holdings, it is not showing
on our Bivio account. Is there a lag time with this type of
transaction and if so about how long until we see it in
Bivio? Anxious minds are asking. Thanks for your help.

Louise Owen
Irvington Investors

Elizabeth A. Eller on

I have the same question. I heard there was a thread on
this in Bivio. If this is one, can someone send me the
link.

-Betsy Eller, CinMIC Treasurer

robert davenport on

Scottrade is notorious for not sending Bivio updates on splits and spin-offs. You will do yourself a favor by adding it using the spin-off button that is found when you are in the investments window. The instructions are easy to understand and follow.

From: club_cafe@bivio.com <club_cafe@bivio.com> on behalf of Elizabeth A. Eller <eaeller@gmail.com>
Sent: Saturday, July 16, 2016 1:51 PM
To: club_cafe@bivio.com
Subject: [club_cafe] Re: Stock Spin-off

I have the same question. I heard there was a thread on
this in Bivio. If this is one, can someone send me the
link.

-Betsy Eller, CinMIC Treasurer

Laurie Frederiksen on

Hi,

If your broker has not sent spinoff information to us, it cannot be entered automatically by AccountSync. You can email us in support to enter it for you or you can easily enter it using the spinoff button on the Accounting>Investments page.

You will need to know four things to fill in the form:

1. The effective date of the spinoff. For this one, it is 7/5/2016

2. The number of shares (including fractional shares) you received of the new company.

For this spinoff you received 1 share of FTV for each 2 shares of DHR you owned.

3. The "remaining basis percentage". This is the percent of the original cost basis that will stay with the parent company after the spinoff.

For this spinoff, the company reported this as 76.2705% on their form 8937 which they posted on their investor relations page:

DHR - FTV Form 8937

4. The amount of cash in lieu you received instead of the fractional shares you were owed that were included in step 2. Sometimes this comes through later than the date of the spinoff. If it does, it is entered as a sale using the Sold button on the Accounting>Investments page instead of being entered on the spinoff entry form.

Once you have made the spinoff entry, it is very important that you check that the cost basis of each lot of your shares of each company shown on this bivio report:

Investment Lot Cost Basis Report

agrees with what your broker shows on an Unrealized Gain/Loss report. Both the fractional share sale and the remaining basis percentage will influence cost basis. There is some variation in basis allocation allowed so you'll want to find out if the broker has allocated it differently than the company has shown.

Most brokers follow the company guidelines, but sometimes there are differences and further adjustments need to be made to get your bivio entries to agree with theirs.

Laurie Frederiksen
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On Sat, Jul 16, 2016 at 12:46 PM, robert davenport <rdavenpo44@hotmail.com> wrote:

Scottrade is notorious for not sending Bivio updates on splits and spin-offs. You will do yourself a favor by adding it using the spin-off button that is found when you are in the investments window. The instructions are easy to understand and follow.

From: club_cafe@bivio.com <club_cafe@bivio.com> on behalf of Elizabeth A. Eller <eaeller@gmail.com>
Sent: Saturday, July 16, 2016 1:51 PM
To: club_cafe@bivio.com
Subject: [club_cafe] Re: Stock Spin-off

I have the same question. I heard there was a thread on
this in Bivio. If this is one, can someone send me the
link.

-Betsy Eller, CinMIC Treasurer

Mail