Tortoise Energy completed the spinoff of Tortoise Energy rights on the record date, May 20, 2026. Tortoise Energy shareholders received 1.0 shares of TYG-RT for each share of TYG owned. Tortoise Energy rights began trading before the distribution with the ticker symbol TYG-RTWI and in the regular way after the distribution on or shortly after May 20,2026. To purchase one share of TYG will require redemption of 3 rights. The purchase price of the TYG shares will be 92.5% of the average price of TYG shares traded on the expiration date, June 17, 2026, and 4 days previous to the expiration date. In any event, the price shall not be less than 90% of the average Net Asset Value of the fund during that same time period. The rights expire June 17, 2026, unless extended.

According to the SEC filing for this transaction the cost basis of the rights will be zero unless their Fair Market Value (FMV) is at least 15% of the FMV of the parent TYG. The author checked the price of TYG-RT and the rights will represent far less than 15% of the FMV of TYG. This transaction can be accounted for using the spinoff transaction in myICLUB.

NOTE: The cost basis allocation is dependent on the prices used for both Tortoise Energy rights and Tortoise Energy rights 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 available, our instructions will use the guidance in form 8937. If your broker does not use that guidance, or form 8937 is not publicly available, the cost basis of the companies involved as recorded in your accounting records and in your broker’s records may 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 Accounting > Securities > Record spinoff of securities in myICLUB.com. If you are unfamiliar with spinoff transactions you can get help at this URL: https://www.myiclub.com/faq/article.aspx?id=54

Here is the information you need to complete the spinoff.

Step 1

• Date: 5/20/2026
• Parent Company : Tortoise Energy (TYG)
• Number of daughter companies : 1

Step 2

Choose

• Remaining Basis Percentage: 100
• Symbol of new company : TYG-RT
• Shares received : (1.0 x # of TYG shares owned)
  •  Include fractional part, if any. For example, if you owned 100 TYG shares, enter 100 (100 x 1.0)
• Price Per Share : 0.50 (Price per form 8937)
• Cash received: See your broker statement for cash-in-lieu received

Click Submit to save the transaction and the spinoff has been entered.

NOTE 2:

This will give the rights a cost basis of zero. The ticker symbol for the rights is not included in the myICLUB database. If a price is needed for a valuation, the price must be manually typed into the valuation table. Price sources for rights offerings often do not use the official ticker symbol for the rights. Check the quote function on your broker’s web site. The author found Yahoo! Finance uses TYG-RI for the rights.

Future TYG rights transactions. (Updated 07/17/26)

If you allow the rights to expire, treat this as a sell transaction with total proceeds = 0.00.

If you sell your rights, treat as any other sell transaction.

If you exercise the rights, first sell the rights for 0.00. Then enter a buy transaction for the TYG shares purchased using the total cost as per the rights offering conditions.

If you exercised the rights, The exercise price of the rights was set by a formula which could not be completed until the expiration date. The formula was 92.5% of the 5-day average price of TYG for the 5 days that ended on the expiration date. (expiration day and 4 previous days). The company posted this price on their web site after it could be calculated. They reported the exercise price as 42.24. The difference between the Fair Market Value of TYG and the discounted price is taxable as ordinary income.

So, to enter the transaction you will:

• Enter the purchase of the new TYG shares at the FMV of the TYG shares.
  • Your broker may report the purchase at FMV.
• Enter a sale of the rights for the value of the discount.
  • Your broker may report this as a redemption of the rights for a specific value received. If not, you can calculate the figure as:(TYG shares x the market price when exercising the rights) minus ((New TYG shares purchased by exercising rights) x 42.24)

The result will be new shares of TYG with a cost basis at market value and a sale of the rights resulting in a ST gain equal to the value of the discount on the price of the TYG shares. The ST gain is taxable as ordinary income. The discount was taxable so the cost basis of the new shares is at market value. Otherwise, you’d get taxed twice on the discount when the new shares were sold.