Zimmer Bionet spun off ZimVie effective March 1, 2022 in a transaction meant to be tax-free to Zimmer Bionet shareholders. ZimVie began normal trading on March 1, 2022. Zimmer Bionet shareholders received 0.10 shares of ZIMV for each share of ZBH owned.
This action is a simple spinoff transaction in the accounting software. It is structured to be a non-taxable event for Zimmer Bionet shareholders. The cost basis allocation information is calculated from the average of the opening and closing prices of ZIMV and ZBH on the effective date of the spinoff. No IRS form 8937 was posted on the ZBH website when these instructions were written. A link to the Draft Registration Statement filed with the SEC is available on the EDGAR site at https://www.sec.gov/Archives/edgar/data/0001876588/000095012321009980/filename1.htm
The cost basis allocation is dependent on the prices used for both Zimmer Bionet and ZimVie 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: http://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.