<topic sku="core" tNum="288312" author="erinpa" xmlns="x-schema:hhTopicSchema.xml"><index><title>Learn about determining cost basis following a company spin-off</title><category>investing</category><klink type="cncpt">Tell me about determining cost basis after a company spin-off</klink></index>
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<p>A spin-off occurs when a company distributes to its shareholders shares of another company that it controls, without requiring the shareholders to surrender any shares.</p>
<p>When you record a spin-off, Money needs to calculate the cost basis for the new shares and the old shares. The cost basis in the old shares will be a percentage of your cost basis in the parent company. Your cost basis in the parent company is then reduced. You can find the percentage of the parent company's stock that should be allocated to the spin-off company's stock in your spin-off paperwork. Consult your tax professional for more information.</p>
<p variant="note">By importing your Money investment information to GainsKeeper, you can take advantage of precise capital gains calculations that adjust your holdings for spin-offs, as well as for mergers, stock splits, and wash sales. GainsKeeper also helps you complete your IRS Schedule D quickly and easily. Plus, you'll have access to tools and suggestions that could help save money on your taxes. All Microsoft Money users receive a free 30-day trial for GainsKeeper and discounts on an annual subscription. Money Premium and Money Small Business users get a whole year free!</p>
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<tease>Learn more about GainsKeeper</tease>
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<li>On the <emph>Investing</emph> menu, click <emph>Portfolio</emph>.</li>
<li>In the left pane on the <emph>Other Tasks</emph> list, click <emph>Capital gains tracking for Schedule D</emph>.</li>
