Fidelity National Financial split the company into Fidelity National Financial and F&G Annuity & Life. The structure of the spinoff was the distribution of F&G Annuity & Life shares as a taxable dividend.

This action will need at least two entries in the accounting software. If the total shares of FG you were entitled to receive included a fractional portion, a third entry (a sell transaction) will be needed. The information below is based on the information available from Fidelity National Financial. The value of the distribution possibly will not match the 1099 as the value of the shares we use here may not be the value used by your broker. The value of FG shares in these instructions uses the weighted average price on the first day of FG trading after the spinoff, December 1, 2022. This price was 19.2565 and was the price mentioned in the FG filing of IRS form 8937.

The Dividend Entry

Go to Accounting > Securities > Cash Distribution. Here is the information you need to complete the dividend entry.

• Date: 12/1/2022
• Select Transaction Type : Dividend or Distribution
• Amount: [19.2565 x 0.068  x  (# of FNF shares owned) ]
  • # of FG shares received = 0.068 x (# of FNF shares owned)
• 19.2565 = weighted average price of FG shares on the first regular trading day, 12/1/2022
  • For example, if you owned 100 shares of FNF your amount would be: 19.2565 x 0.068 x 100 = 130.94
• Ex-Dividend date:  12/1/2022
• Type : Dividend
• Select Security: Fidelity National Financial (FNF)

Save the transaction and the dividend has been entered.

The Buy Entry

• Go to Transactions > Buy  or Accounting > Securities > Buy depending on the version of the software being used.
• Here is the information you need to complete the buy.
• Date: 12/1/2022
• Select Security :  F&G Annuity & Life (FG)
• Number of Shares Bought :  0.068 x (# of FNF shares owned).
• For example, if you owned 100 FNF shares, you were entitled to 100 x .068 = 6.8 FG shares.
• Net Total of Purchase: Use the same value as the Amount from the dividend entry above.

            Be sure to use the same cash account for the Dividend entry and the Buy entry.

If your buy transaction included fractional FG shares, continue to the next step. If not, you are done with this spinoff

The Sell Entry

Go to Transactions > Sell  or Accounting > Securities > Sell depending on the version of the software being used.

Here is the information you need to complete the sell.

Date: 12/2/2022

Select Security :  F&G Annuity & Life (FG)

Number of Shares Sold :  The fractional part of the shares bought in the Buy Transaction.

 For example, if you owned 140 shares of FNF, you were entitled to 140 x 0.068 = 9.52 FG shares. Sell 0.52 shares 

Net Proceeds: Use the cash-in-lieu amount from your broker statement.

When saved you are finally done with all transactions related to this spinoff.

NOTE: The value of the shares received as a dividend is determined by the Fair Market Value (FMV) of the shares on the distribution date. IRS regulations do not have one way to determine FMV. It is therefore possible these instructions and your broker may determine FMV differently resulting in a mismatch in cost basis for the FG shares held. . 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.