Spin Off Cost Basis Calculator

Calculate the cost basis for shares received in a spin-off transaction by entering the original investment details and the spin-off ratio.

Input Parameters

Calculation Results

Calculation Formula

Cost Basis per New Share = Original Investment / (Original Shares × Spin-Off Ratio)

Where:
- Original Investment: The amount you initially invested
- Original Shares: The number of shares you originally owned
- Spin-Off Ratio: The ratio of new shares received per original share

Results

Total Number of New Shares Received:

$0.00

Cost Basis per New Share:

$0.00

Total Cost Basis for New Shares:

$0.00

Spin Off Cost Basis Calculator Calculator Usage Guide

Learn how to use the Spin Off Cost Basis Calculator to determine your cost basis for shares received in a spin-off transaction.

How to Use This Calculator

  1. Enter your original investment amount (the total money you invested initially).
  2. Enter the number of original shares you owned before the spin-off.
  3. Enter the spin-off ratio provided by the company (e.g., if you received 1 new share for every 2 original shares, enter 0.5).
  4. Click the "Calculate" button to determine your cost basis per new share and total cost basis.

Understanding the Results

The calculator provides three key results:

  • Total Number of New Shares Received: The number of shares you received in the spin-off.
  • Cost Basis per New Share: The portion of your original investment allocated to each new share received.
  • Total Cost Basis for New Shares: The total cost basis allocated to your new shares, which should match your original investment amount.

Example

Suppose you originally invested $10,000 in 100 shares of Company A, and the company announces a 1-for-2 spin-off (spin-off ratio of 0.5). The calculator would show:

  • Total New Shares: 50
  • Cost Basis per New Share: $200.00
  • Total Cost Basis for New Shares: $10,000.00

Important Notes

This calculator provides a simplified way to determine your cost basis for spin-off shares. It assumes no additional cash payments or other considerations in the spin-off. For complex transactions or tax implications, consult with a financial advisor or tax professional.