39.2706% of and 60.7294% between the two shareshttp://finance.yahoo.com/mb/forumview/?&v=m&bn=e1394825-b7c9-4453-9e19-b5707f0f9350#
I am pleased to see that there is a "Jul 24, 2015 Form 8937 - Stock Cost Basis Allocation" form on the Ebayinc investor's website.
Bottom line is that their "example" allocates 60.7294% of the basis to PYPL. It is usually best to follow their example for the small shareholder. They used the NYSE opens on July 20.
I would expect existing contracts to continue until expiration, but instead of just being for 100 EBAY, they would be for a basket of 100 EBAY plus 100 PYPL.
They knew how they would allocate the basis in their example within a couple of days of the stocks trading independently for real. Eventually they will post a document with an "example" of allocating basis, and most people will follow that method. That is because the brokers will use that method eventually if you ever sell.
It is a measure of how important the smaller shareholders are to the two companies in how long they take to get around to that.
Some will wonder why people care if they are not going to sell right away. Many people use personal financial software, such as Quicken, that needs this info to enter the spin-off transactions properly.
Dupont has posted an "example" basis calculation in the investor relations site. This is very probably going to match what your broker uses to track basis and to report to the IRS if you sell. Surprisingly, the "example" uses the average of the high-low on the *second* day of trading. Bottom line:94.915% to DuPont shares and 5.085% Chemours.
DD spun off 0.2 shares of CC for each DD on July 1. If the basis is allocated by the ratio of the closes, the new basis of DD is 94.898968% of the former basis. Fidelity seems to be using that method for now.
If the method is the ratio of the highs and lows (commonly used for many spinoffs), DD keeps 95.168217% of the former basis. You get to choose the method that you use, but matching what the broker reports is the simplest in the long run.
The DD website is silent on the basis allocation so far.
Looking at the BAX investors's section, prior spinoffs used the Average of high and low trading prices for each stock on the first day of active trading.
Based on high, low 38.94, 37.43 for BAX and 34.5, 30.58 for BXLT, that would give 53.990809% of your basis to BAX and 46.009191% to BXLT
The BXLT shares have been delivered -- 1 for each BAX held.
Now the wait to see how the basis allocation will be reported. While the IRS allows more than one way, it is simplest to wait so that your basis recording matches that that the broker will report if you sell.
The more important the shareholders are to the BXLT or BAX management, the sooner the numbers (called examples) get reported. If they are not responsive, the first indication would be the filing in Edgar.
I presume this was a tax-free spinoff, but they are not always. I did not read the documentation but just the headline stuff.
Search for info on 20V UBTI to see information. Most will be correct, but the majority of what you find are overly worried. Note that *you* will not have to file a return or pay taxes. It is unusual for the smaller investors to get the tax, but if it happens, it is the custodian (broker) who files the return and pays the tax from your IRA.
That is the title of a document on the BHP investor relations place.
I got shares, but the cost basis will be about $9 per share according to BHP. The same total will be considered as a dividend on your BHP shares.
Also, each BHP ADR/ADS represents 2 BHPBilliton shares. So for the underlying shares, it was a 1 for 1 distribution of shares.
There is a depository fee charged for this event, and that fee is not deductible by most US investors.
Holders of GOOG get 0.0027455 more shares for each share of GOOG held. Fractional shares are converted to cash in lieu of shares.
If you search for these two terms "0.0027455" GOOG ,
you will find references.
Thanks. I had thought I saw a 13T5 W2 number for EPD, but I now think I scanned across and read the 13T4 value instead of the 13T5 number. Dang.
I found this statement in a document: "MLPs Taxed As C-Corps. There are five shipping MLPs (i.e., Capital Product Partners L.P., Golar LNG Partners LP, KNOT Offshore Partners LP, Navios Maritime Partners, L.P., and Teekay Offshore Partners, L.P.), which elect to be taxed as corporations for U.S. federal income tax purposes. "
I would put a link, but that usually does not work. I see NAPTP has similar info. So that would seem to say there would be no UBTI.
Anyway, do you think this quote is no longer true? If you got a GMLP K-1, that would be a good reason to think that something changed.
I split the parts into separate K-1s for Turbotax. Two of them have small suspended passive losses. Can I just create a final K-1 for those two to take those losses, or is that something I cannot do unless I sell out of EPD?
...online. Note when you import/enter into Turbotax, the fact that you have a value in line 3 (Other rental income) will give an error because it is mixed with the pipeline business. The workaround is to make a new K-1 in TT that is marked Other Rental Activities instead of Business. Remove the line 3 value from the primary K-1, and enter that value onto line 3 of the new Turbotax K-1.