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