Enter the proportion of the spin-off stock’s value and the cost basis of original stock into the Calculator. The calculator will evaluate the Spin-Off Cost Basis.

## Spin-Off Cost Basis Formula

SOCB = PSV * OSV

Variables:

- SOCB is the Spin-Off Cost Basis ($)
- PSV is the proportion of the spin-off stock’s value
- OSV is the cost basis of the original stock

To calculate Spin-Off Cost Basis, multiply the proportion of the spin-off stock’s value by the cost basis of the original stock.

## How to Calculate Spin-Off Cost Basis?

The following steps outline how to calculate the Spin-Off Cost Basis.

- First, determine the proportion of the spin-off stock’s value.
- Next, determine the cost basis of original stock.
- Next, gather the formula from above = SOCB = PSV * OSV.
- Finally, calculate the Spin-Off Cost Basis.
- After inserting the variables and calculating the result, check your answer with the calculator above.

**Example Problem : **

Use the following variables as an example problem to test your knowledge.

proportion of the spin-off stock’s value = 0.45

cost basis of original stock = 30