I own 1000 NRGY. I was "given" 108 shares plus 40-cents cash in lieu of of Suburban. TDAmeritrade does not indicate if this is a "dividend" or a "split" - shows "Stock div/split" only.
I've done this over the years in Quicken with other issues. However, at this time I am very sick and can only get away from my bed and oxygen a few times a day.
I've tried to put this into my Quicken but it just doesn't seem to go in correctly. By rights, should it night lower my basis of NRGY, increasing the basis of SPH accordingly?
If anyone uses Quicken and has been able to get this into the program in a correct manner, please let me know how you did it. I can't reconcile my TDAmeritrade statement for September until I get these two issues (the stock plus the whole 40-cents) resolved correctly in Quicken.
I'm so sorry to have to bother you for this, but I really don't know how to handle it myself.
A few things. First, brokerage firms usually don't do "tax" work; they merely report the tax effects of a transaction based on what the issuers tell them to report. Most times, the issuers have to wait until after the year-end, especially on things like whether a distribution is a dividend or return of capital. Second, NRGY should have had a tax discussion in their SEC filings or on their website.
Transactions among MLPs are different than corporate mergers. In "regular" corporate mergers or sales, if you receive shares of one company in exchange for shares of the shares that you own, your basis in the shares that you owned is proportionally applied to the shares that you receive and the cash-in-lieu payment that you receive for fractional shares is treated as a sale for which you may have a gain or loss (depending on what your basis was).
I believe the NRGY/SPH transaction was actually 2 steps. First, NRGY sold its propane unit to SPH in exchange for SPH shares. NRGY will either have a gain or a loss on this sale -- they have a tax basis for this unit and they received SPH shares valued at a certain amount. You as a unitholder of NRGY should see a capital gain or loss on your K-1 when you get it in March (I believe that gain or loss reported to you will also effect your tax basis in your remaining NRGY shares). The second step is NRGY's distribution of these SPH shares to you. I do not believe this is a separate taxable event. Instead, your new tax basis in NRGY should be "divided" up between your NRGY shares and the SPH shares that you received. You will get a K-1 from SPH and they will report your tax basis in your SPH shares.
Hope this helps somewhat. I could be wrong about the treatment of this deal because Partnership tax has its own rules; however I own several MLPs and when some of them have sold properties, they have reported gains on the K-1 issued to me.
I may not be of much help as far as the tax treatment of the 108 shares. I have Quicken but an old version (2005). I enter the shares as "added" to show an entry if you already have a position in SPH (which I do). or create a new position for SPH at 0 cost. The 40 cents is nothing more than an income entry as cash. How it is treated as a tax issue is another story altogether. Maybe some folks on this board may give you some help. My guess is that you will have to deal with it when you sell the shares. Hope this helps.