Link Group (LNK) in Specie distribution of Pexa (PXA) shares

[Yugarian]

LNK did an in Specie distribution of PXA shares to LNK shareholders on 10 Jan 2023. How do I handle that in Sharesight?

I have added a new Holding of PXA shares with cost base of PXA shares at 10 Jan 2023, but what do I need to do to the LNK holding to reflect the loss of value/ adjusted cost base in the LNK shares

[Kippax]

From the Explanatory Memorandum 22/11/2022:
Australian resident Link Group Shareholders who hold Link
Group Shares must apportion the tax cost base of their Link Group Shares just before the Distribution between the
Link Group Shares and PEXA Shares held just after the Distribution.
The first element of the tax cost base of each Link Group Share and corresponding PEXA Share held by an Australian
Link Group Shareholder just after the Distribution will be determined as follows:
• calculate the total of the cost bases of each Link Group Share held (work out just before the Distribution); and
• apportion the result of the above calculation between the Link Group Shares and corresponding PEXA Shares
held just after the Distribution, having regard to the market values (or a reasonable approximation thereof) of the
shares just after the Distribution. Link Group will provide Link Group Shareholders with information to assist them
in determining the respective cost bases of their Link Group Shares and corresponding PEXA Shares on the Link
Group website (www.linkgroup.com) following the Distribution.

[Shaun_A]

Can someone give an example?

[cyoung]

ATO Class Ruling:
Link Administration Holdings Limited – demerger
of PEXA Group Limited

https://www.ato.gov.au/law/view/pdf/pbr/cr2023-007.pdf

[roshan.sharesight]

Hi there,
To handle "PEXA IN-SPECIE DISTRIBUTION "
Go to the LNK.ASX holding and select “enter a new trade or adjustments”
Add a “Adjust Cost Base” trade as of 10 Jan 2023
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3. Go to the overview page and select “Add Holding” button
4. Search for PEXA.ASX and add a opening balance trade as of 10 Jan 2023 (one PEXA share for every 7.52 Link Group shares held at the Record Date rounded down to the nearest whole PEXA share) I.e. if you had 100 LNK shares, you will receive 13 PEXA shares
5. Adjust cost base value on LNK = total cost base on opening balance trade of PEXA.
   (Note: If you add the Unit/share price value in the opening balance trade as total cost base/quantity, the performance will be calculated based on the PEXA’s cost base and current market value. However, if you add the market price of 10 Jan 23 on the Unit/share price filed, the performance is calculated based on the market value of 10 Jan and current market value )
6. Save the trade after entering the cost base and quantity as shown in the example below.

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Note: The guide above is a suggestion on how to handle the corporate action in Sharesight and is not finance or tax advice. We advise you to consult your financial advisor or accountant. We also encourage you to review the official Documents for full details.

Thanks

[Trewth]

I had to do the Pexa transaction as a buy trade as I was getting a weird capital gain or incorrect capital gain loss when I would raise it as an opening transaction even with the cost base was being corrected.

Then I had to go into cash accounts and raise a fee reimbursement for the same amount. Please see screenshots, the buy transaction shows correct capital gain/ loss

any feedback would be appreciated

[Trewth]

disregard I was able to edit the share price in opening balance, I still had to add a reimbursement fee as it says there is a buy trade when using opening balance in my cash account

[roshan.sharesight]

Hi there,
Please note that, when you add a opening balance trade, the performance on the holding page will be calculated based on the market value of holding on that day rather than the original cost base.
However, original cost base will be taken into calculation in the CGT report when you add a sell trade for it.

Thanks