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jci headache part 2: how to calculate cost basis / tax consequences of jci -> adnt spinoff?
user
i am using the same logic as the two answers above. i got almost the same result ($46.60 instead of $46.59 per share) using the sold fractional share basis. however, the jci qualified dividend (on the 1099-div, not the 1099-b) divided by the number of shares spun off yields a basis per share of only $40.97 that compares to $45.349 in answer two above. it seems that we should get the approximately same basis per share using the same arithmetic, and i do not know why we don't. for my tax files, i plan to use the adient basis equal to the dividend from the 2016 1099-div of jci (the plc after the merger). my reasoning is that i cannot use an amount for the adient basis that is greater than the dividend i paid taxes on. [in case this part of the question comes up again, you can get historical quotes at various websites such as https://finance.yahoo.com/quote, which does show $45.51 as the adient closing price on 10/31/16.]
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