Can anyone advise how to manage this demerger in Personal Plus?
I would appreciate the same advise too!
The demerger was effective on 1-7-2021. The fact that there is no solution shown seems to mean that Reckon cannot handle this transaction. This appears odd as Woolworth's does have a tax ruling and it could apply in other cases in the future. In addition dividends also have to be recorded against Endeavour for the Sept 2021 dividend.
The only suggestion I can make is that the calculation is done by opening a spreadsheet. List down all the share purchases (hope you do not have too many DRIP's). Then calculate 85.81% of the original Woolworth share cost for all the owned Woolworth shares owned and 14.19% as the cost of all the new Endeavour shares.
In Reckon open up a share clearing account. Transfer each of the original Woolworth share purchases to the clearing account with a date of 1 July 2021. Then transfer out of the clearing account Woolworth shares using the 85.81% cost shown on the spreadsheet, with a 1 July 2021 date. Open up a new Endeavour share account in Reckon and out of the clearing account 1 Endeavour share for each Woolworth share owned using the 14.19% cost in the spreadsheet. Again the date of the acquisition is to be 1 July 2021. The clearing account should now be zero and the cost of the Woolworth and Endeavour shares will be as the tax ruling.
AS Woolworth listed in 1993 the prior 20-9-1985 CGT will not apply.
All seems very messy when the Reckon software should apply a solution as they are now charging an annual fee for what should be tax compliant software.
Clearing accounts are a new adventure for me, but I'm sure we can figure it out.
Rod, we cannot be the only ones affected by this problem. The problem with using the clearing account means that both Woolworth and Endeavour shares the have an acquisition date of 1 July 2021, so you also have to update this manually if sold within 12 months.
Just wonder how everyone is accounting for the Endeavour dividends if they have not established an Endeavour share holding with a cost base. Also begs the question of net worth calculation in reports. If in 2021/22 tax year some people have sold Woolworth or Endeavour shares or both Reckon will not calculate tax position.
We sholud not have to as you say "figure it out" the software should do it for us.