Corporate Spin-off

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Wesfarmers have set up Coles as a separate security giving share holders the same number of shares in the new company.  Not being a financial genius, I always find these sort of transactions very difficult.  I am assuming I enter this as a Corporate Spin-off.  Using the template to do this, it asks for the company name which I have entered as Wesfarmers and then the new company name which I have entered as Coles (it does not ask you to set it up as a new security).  It then asks the number of shares, cost of old share and cost of new share.  I think I am on the right track as  adding the 2 figures together comes to exactly the amount of the Bulk Redemption Upload Price.  My problem is that when I click done, it says that the security name is already in use, choose a new one.  Grateful for any help with this. 
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Carljh

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Posted 2 weeks ago

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Diver Dave

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Carljh, the details of the spin-off are not yet available.  I understand it will be via a franked dividend and a Return of Capital.  Easiest way to record the transaction is not to use the Capital Spin-off option, but record the dividend and the Return of Capital, then buy your Coles shares for that the cash amount received - that becomes your cost base for Coles.  

Whichever way you record it Reckon will have the Coles purchase date as the 21st November 2018, whereas the date for the ATO  and CGT calculations is the date of your original purchase of Wesfarmers shares.  Only matters if you were to sell them in the next 12 months.