I did a search for Ventas 8939. This found a PDF on the website. I wish I could just give you the URL, but bottom line is they did basis allocation of 12.95% to CCP based on Aug 18 NYSE closing prices.
I have been waiting for that. I did not find it on the investor relations part of the website.
You will get paid for the fractional shares. Watch your broker account for a "CIL" or "Cash In Lieu" transaction. It should be dated Aug 21 or Aug 24.
At some point the company will file Form 8937 with the IRS. This will
contain basis allocation information.
There are several ways that basis can be allocated. There is no
dominant choice that the companies make. You can use a different
method than your broker does, but then when you sell you will have
to enter more figures to show the difference in reporting. It is
easier if you use the method that your broker uses. I expect most
people don't track their basis themselves now, but many of us do.
I presume, but I am not sure, that the broker will use the method
that the company used. If you use personal finance software, it is
much easier if you have the information sooner.
The companies almost certainly already know the method they will
use. If you are important to them, they will post that on their
investor relations website within a few days after the spinoff is
complete. Most companies wait a week or more. Some might take a
month, or you might have to find the form 8937 on EDGAR.
Considering how easy it is to post the information, it is sad that
more companies don't care to make things easier sooner.
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.