Brookfield Asset Management (BAM) to Brookfield Corporation (BN) and its spinoff of a new Brookfield Asset Management (BAM)

Brookfield Asset Management changed its name to Brookfield Corporation as part of its spinoff of its asset management business. The daughter company from the spinoff took the name and ticker symbol of the old Brookfield Asset Management. These transactions were structured to be a non-taxable event for original BAM shareholders. Original BAM shareholders continued to hold their original number of shares of BAM as new BN shares. In addition, they received 1 share of the new BAM for each 4 shares of the original BAM (now BN).
Brookfield Corporation posted guidance on the cost basis allocation for the spinoff. These instructions use the cost basis allocation from that Brookfield Corporation post.

This is entered as two transactions. First enter the name change as a merger of BAM into BN.
Return calculation on the valuation statement will start with the merger date, not the original BAM purchase. The name change can be entered by editing the security profile of the original BAM. However, since the spinoff company will be taking the name and ticker symbol of the parent after the spinoff, a simple profile edit may cause some ticker symbol confusion later.

The Remaining basis percentage in the Brookfield example was calculated using the volume weighted average prices of BAM and BN on the first trading day after the spinoff, 12/12/2022.
Access to IRS form 8937 is available thru this URL:

1. The Merger (for the name change)
The merger transaction screen is used for this entry. If you are not familiar with entering a normal merger, you can find information about this at this web address:

  • Transaction date: 12/9/2022
  • Old Security: Brookfield Asset Management (BAM)
  • Old Security Price per share: 43.15
  • Cash Received: check your broker statement for the amount
  • New Security: Brookfield Corporation (BN)
  • Shares Received: (# of BAM shares owned)
  • Price Per Share: 43.15 (closing price on 12/9/2022)

2. The Spinoff
Below is the information needed to enter the spinoff. The normal spinoff transaction screen is used for this transaction. If you are not familiar with entering a spinoff, you can find information at this web address:

Step 1

  • Transaction date: 12/10/2022
  • Parent Company: Brookfield Corporation (BN)
  • Number of daughter companies : 1

Step 2

  • Choose Remaining basis percentage button
  • Remaining Basis percentage: 80.81
  • Ticker symbol: BAM
  • Shares Received: (# of BN owned) x 0.25
  • For example, if you owned 100 BN shares you would receive 25 new BAM shares.
  • Price per share: 32.07 (Volume weighted average on 12/12/2022)
  • Cash Received: See your broker statement for cash-in-lieu amount