Synnex spun off Concentrix effective December 1, 2020 in a transaction meant to be tax-free to Synnex shareholders. Concentrix began normal trading on December 1, 2020.
This action is a standard spinoff transaction in the accounting software. It is structured to be a non-taxable event for Synnex shareholders. The cost basis allocation information is calculated from the average of the opening and closing prices of CNXC and SNX on the effective date of the spinoff. Neither company has posted guidance on their websites on cost allocation at the time these instructions were written.
NOTE:
The cost basis allocation is dependent on the prices used for both Synnex and Concentrix in the cost basis allocation calculations. In our experience brokers tend to use the prices found in the guidance companies post on their websites including IRS form 8937. If your broker does not use that guidance, the cost basis of the companies involved as recorded in your accounting records and in your broker’s records will not match. This is not cause for concern. This is just due to the inexact nature of the tax code in this regard. Partnership tax returns have specific areas to reconcile these usually small differences. ICLUBcentral tax printer software automatically fills in these adjustments in the normal operation of the software using the data imported from your accounting records and that you enter from your 1099.
The Spinoff Entry
Go to Transactions > Spinoff or Accounting > Securities > Record spinoff of securities depending on the version of the software being used. If you are unfamiliar with spinoff transactions you can get help at this URL: https://www.iclub.com/support/kb/default.asp?page=normal_spinoff
Here is the information you need to complete the spinoff.
Save the transaction and the spinoff has been entered.
