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.

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.