Here is a handy tool to help you calculate your cost basis for stocks that you receive as a spinoff from a stock that you already own. In the usual situation of a tax-free spinoff, you need to allocate part of your cost basis in the original stock to the shares of stock that you received in the spinoff and also compute the gain or loss for any cash you received in lieu of fractional shares.
There are also taxable spinoffs where your basis is the fair market value on the day the shares are distributed to you. These types of spinoffs may also be a partial return of capital rather than fully taxable.
These are just some of the recent spinoff transactions ready for you in the calculator:
AbbVie (from Abbott Labs)
Allegion plc (from Ingersoll-Rand plc) America Movil (from Telefonos de Mexico) Ameriprise (from American Express) Ascent Media (from Discovery Holdings)
Ashford Hospitality Prime (from AHT) Brink's Home Security (from Brink's Co) Broadridge Finl (from Automatic Data Proc) Citadel Broadcasting (via Disney) Clearwater Paper (from Potlatch)
Crimson Wine Group (from Leucadia) Discover Financial (from Morgan Stanley) Dr Pepper Snapple Group (from Cadbury) Embarq (from Sprint Nextel)
Exelis (from ITT Corp) Fairpoint Communications (from Verizon) Fortune Brands Home & Security (from Beam) Frontier Communications (from Verizon) Hanesbrands (from Sara Lee) John Bean (from FMC Technologies)
"I don't make jokes. I just watch government and report the facts."
Kraft Foods (from Altria) Lender Processing (from Fidelity Natl) Lone Pine Resources (from Forest Oil) Metavante (from Marshall & Ilsley) Patriot Coal (from Peabody Energy) Philip Morris Intl (from Altria) Spectra Energy (from Duke Energy) Sunpower Class B (from Cypress) Telmex Internacional (from Telmex) Teradata (from NCR Corp) Tim Hortons (from Wendy's) Treehouse Foods (from Dean Foods) Western Union (from First Data) Zep (from Acuity Brands)
You can also enter your own data.
The calculator also has data for TAXABLE spinoffs, such as those listed below with the following cost basis per share: Brookfield Infrastructure Partners $20.56 Digimarc Corp (new) $7.56 Nortel (from BCE) (U.S. tax treatment) $117.38 RXi Pharmaceuticals (from CytRx) $8.84 Ship Finance Intl (3/22/07 spinoff from Frontline Ltd) $26.00 Vertus Investment Partners (from Phoenix) $9.52
If you know of other spinoffs, please help us build our database for the benefit of all users. Please send us the details by email so that we can add it to the table of pre-filled values.
For owners of multiple tax lots, the calculator results must be manually adjusted. The fractional shares resulting from each tax lot should be added together because cash in lieu of fractional shares will be paid only on the remaining fraction. The calculator is not yet set up to handle this type of situation automatically, but check back for future enhancements.
Information provided is intended solely for cash-basis U.S. citizen individual taxpayers and is believed to be accurate for most cases but is not guaranteed. Always consult your personal tax advisor about your own situation. Suggestions are most welcome. Please email our webmaster @ costbasis.com with your comments. If this website has been helpful to you, please consider making a donation to support our efforts.