How To Calculate Cost Basis Of Stock Spin Off. To figure your cost basis in altria after the spinoff, multiply $70 by the allocation factor of 30.5%, or $21.35 a share. A spinoff is the creation of an independent company through the sale or distribution of new shares of an existing business or division of a parent company.
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A spinoff is the creation of an independent company through the sale or distribution of new shares of an existing business or division of a parent company. Therefore, you would allocate 4.18% ($5.28 / ($120.85 + $5.28)) of your tax basis in your ibm shares immediately prior to the distribution to the kyndryl shares received in the distribution and allocate 95.82% ($120.85 / ($120.85 + $5.28)) of your tax basis to your ibm shares. Percent allocation of cost basis to new spinoff stock (for example,.2 for 20%) 7.