Thanks @RobertB4444 for taking the time to reply. Forgive me if I'm just not getting it, but when you say create my adjusted cost basis after the split, are you confirming my thought that I need to calculate my cost basis for the IBM and Kyndryl shares, and then multiply the Kyndryl cost basis by .4?
So to put it in concrete terms, original cost basis of those IBM shares for me was $28. Applying the calculations from that form 8937, we allocate 95.8% of the cost basis to the IBM shares and 4.2% of the cost basis to the Kyndryl shares. So total cost basis of the 227 IBM shares is $6356. As part of the spinoff, I get 45 shares of Kyndryl, which means that cost basis is 4.2% of the fair market value, approximately $263.63. So that makes the Kyndryl per share cost basis be $263.63/45, or $5.86? And then I multiply 5.86 by .4 to get a cost basis of the fractional Kyndryl share of $2.34? And that means that the $8.18 that I got as cash in lieu represents a capital gain of $5.84? And that's a long term capital gain because I originally received the IBM shares more than a year and a day ago?
