Spin-Off Cost Basis Calculator

Calculate Spin-Off Cost Basis



Formula

The formula to calculate the Spin-Off Cost Basis (SOCB) is:

\[ SOCB = PSV \times OSV \]

Where:

What is Spin-Off Cost Basis?

The Spin-Off Cost Basis is the cost basis assigned to the shares of a newly created company (spin-off) from an existing company. It is calculated by allocating a portion of the original stock's cost basis to the new shares based on the proportionate value of the spin-off stock to the original stock.

Example Calculation

Let's assume the following values:

Using the formula:

\[ SOCB = 0.25 \times 1000 = 250 \]

The Spin-Off Cost Basis is $250.