However, as a counter to these strengths, the team also finds weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and weak operating cash flow. The one I am looking at shows ADNT .8 shares were sold for $36.16 which would equal a sale price of $45.20 per share, and a cost basis of $37.27 for the .8 shares or $46.59 per share.I am using the same logic as the two answers above.
That part is the simple part... but how can I figure out the tax consequences of this spinoff and how to apportion cost basis between ADNT and JCI?My broker's 1099-B form tells me that I received a Qualified Dividend from JCI on 10/31/2016 of $512.44, which would be equivalent to $45.349 valuation of ADNT as of the spinoff date for my 11.3 shares (before the 0.3 shares were sold as cash-in-lieu) .For U.S. federal income tax purposes, the distribution will not be eligible for treatment as a tax-free distribution by Johnson Controls with respect to its stock.
Any portion of the Distribution Amount that is treated as a dividend will not be eligible for the dividends-received deduction allowed to corporations under the Code.To subscribe to this RSS feed, copy and paste this URL into your RSS reader.so if I own 113 shares of new JCI, then I could calculate 113*0.1*$45.51 = $514.26, and then my cost basis of the 11 remaining ADNT shares as $500.61 (with $13.65 cash-in-lieu for the 0.3 shares)However, the JCI Qualified Dividend (on the 1099-DIV, not the 1099-B) divided by the number of shares spun off yields a basis per share of only $40.97 That compares to $45.349 in answer two above. When a company goes through a reorganization such as a split, a spinoff or a merger, your cost basis in your shares needs to be adjusted. Federal Income Tax Consequences of the Distribution to U.S. HoldersYour 1099-B report for ADNT on the fractional shares of cash should answer this question for you. Because of the lack of detail in the tax code, both our choice and your broker’s choices would be reasonable estimates of market value for the shares received. If this assumption is incorrect you will need to adjust the nature of the distribution at a later date.45.51 = closing price of ADNT shares on the first regular trading day, 10/31/16Save the transaction and the dividend has been entered.Here is the information you need to complete the buy.If your buy transaction included fractional ADNT shares, continue to the next step.
The following describes, in general terms, a typical tax basis calculation for United States spinoffs.
The Spin Off of Adient from Johnson Controls was considered a taxable event. Other withholding agents may withhold on payments to non-U.S. holders on a different basis and may have special procedures in place allowing non-U.S. holders to establish that payments of merger consideration to them should not be subject to such withholding.‘‘Johnson Controls International plc’’ and trades under the ticker ‘‘JCI.’’ As a result, former shareholders of both Johnson Controls, Inc. and Tyco who hold shares of the combined company as of the October 19, 2016 record date will receive Adient ordinary shares in the distribution.The Spin Off of Adient from Johnson Controls was considered a taxable event.