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.

1. First, determine the proportion of the spin-off stock’s value.
2. Next, determine the cost basis of original stock.
3. Next, gather the formula from above = SOCB = PSV * OSV.
4. Finally, calculate the Spin-Off Cost Basis.
5. 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