RetireJapan

This is quite annoying. I owned 10 shares of IBM and they did a spinoff the other day giving 1 share of the new company Kyndryl (KD) for every 5 shares of IBM. When this happened, it seems like Rakuten took my shares out of the designated account and moved it to General (Ippan) as well as the new shares. Does this now mean I have to file a Kakutei Shinkoku for the $5 dividends IBM gives out?

Wait, when did that happen? I also have some IBM

Just checked and my IBM shares are in NISA. They seem to still be in NISA, thankfully. No idea what is going to happen to the spin-off ones...

EDIT: found my two KD shares in my 一般 account. Very annoying. I wonder if they will pay a dividend? If not just leave them I guess.

After reading around, for SBI and Rakuten, they REMOVE YOUR SHARES from designated and move it to general in cases like stock splits or spinoffs. Monex keeps them in designated. For NISA, the shares stay in NISA but the spinoff shares go into general.

Whats crazy is that in Rakuten, the acquisition cost for IBM and KD both for me is now 0 so it looks like I'm really rolling in the money even if that's not true. Really annoying.

For dividends, it seems like all dividends on Rakuten by default have tax withheld if you chose so at account setup so its not an issue (I will have to check when IBM issues their dividend) but if I ever wanted to sell IBM, I will have to do kakutei shinkoku if I make a profit (the spinoff caused IBM stock to go down WAAAY below my acquisition price so I should owe the government nothing in cap gains). KD is treated by the Japanese Tax Agency as having been acquired for 0 though so if we ever sold it, cap gains is on the entire value of the sale.

This is just about to happen to T as well.
If the value assigned (by Rakuten) is 0 I assume it doesn't make sense to sell in the general account to re-buy in tokutei.
Just leave and file my feeble dividends at kakutei shinkoku time?

beanhead wrote: ↑Thu Apr 07, 2022 10:19 am This is just about to happen to T as well.
If the value assigned (by Rakuten) is 0 I assume it doesn't make sense to sell in the general account to re-buy in tokutei.
Just leave and file my feeble dividends at kakutei shinkoku time?

The dividends will be automatically withheld by Rakuten if you have the gensen choshuu ari option even if the shares are in Ippan. Selling the actual shares will be the painful part. I actually read online that some people choose to sell their shares before the stock split and then re-buy afterwards just so they don't have to deal with shares in Ippan.

zeroshiki wrote: ↑Thu Apr 07, 2022 10:59 am
Selling the actual shares will be the painful part. I actually read online that some people choose to sell their shares before the stock split and then re-buy afterwards just so they don't have to deal with shares in Ippan.

Thanks a lot for that.
As you said before, re-setting acquisition price to 0 makes no sense at all. It was only a small amount for me, so I took a hit yesterday and sold them. Whether to buy back later or just be sensible and buy an eMaxis Slim fund with that money...to be decided...