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Junior Member
Group: Forum Members
Last Login: 27/03/2008 8:34:26 PM
Posts: 6,
Visits: 253
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| From my holding in Elkedra Diamonds NL (EDN) I have received an In Specie Distribution of a number of shares in Uramet Minerals Ltd (URM). These were entered into MySF with the number of shares at $0.00 per share and the normal bank account. The MySF "Transaction Reporter" does NOT list this transaction, but they do show up in the "Asset Summary" report. Is this an acceptable method of recording this transaction?
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MySF Administrator
Group: Administrators
Last Login: 17/05/2010 6:31:15 PM
Posts: 464,
Visits: 632
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Hi,
This depends on whether or not the value of the distribution was in fact $0.00, especially from the perspective of the tax office. In other words, if you were to sell these at $1.00 tomorrow, is your capital gain $1.00 or a lower amount? If it is a lower amount then the cost base of the assets is not zero and you should have added them in at a different cost.
If the $0.00 is correct, then the rest is ok. This record will show up in the asset reports and you will be able to view the account in the general ledger. However, the software did not create a transaction because it would have been
DR asset $0
CR income $0
and no transactions are created for $0 totals.
Regards,
MySF
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Junior Member
Group: Forum Members
Last Login: 27/03/2008 8:34:26 PM
Posts: 6,
Visits: 253
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| Thanks, as far as I know this in-specie distribution was given to existing share holders at $0.00 cost to share holders and as such selling at any price will invoke a capital gain.
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