How do I record Bonus payout Stocks received by Company in transactions

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1

Hi,

How can i add bonus transaction where Company have given me Bonus stock shares.

e.g. I own 20 stock shares of Company A, the company gives me a Bonus share payout of 800% in shares.

Can you please guide me on how to add such transactions.

Thanks.

2

Hi,

It mostly depends on how you would tax such transactions and what would be the cost-basis.

  1. A Transfer transaction (as you received, not bought them) without a cost-basis - which sets the cost-basis to the current market price. In this case, you would be taxed only on the revenue above that market price (not the value of the received stock) at sale.
  2. A Transfer (or Buy) with a 0 cost-basis - so you’re taxed on the whole value at sale
  3. A Dividend with the stock market value set as the cost-basis - you would be taxed like with any other dividend with a capital gains tax upon receiving. Plus you set Received Asset Quantity to the amount of shares received - you’ll be taxed only on the revenue once they’re sold.

Hope it helps

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