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In 2010, Questar Corp. spun off a separate company, QEP Resources. I had stock in Questar that I purchased before this spin off. At the time of the spin off, every share in Questar Corp. was converted in to one share in Questar Corp. and one share in QEP Resources.

I've now sold off my stock in Questar Corp. (but not my QEP stock). How should I calculate the cost basis for the Questar stock purchased before the spin off of QEP?

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Your brokerage account statement should report the Questar cost basis adjusted for the spinoff (and would have done so starting the day the spinoff happened), shifting the portion of it over to your shiny new QEP stock based on the opening price. At what price did you buy into Questar?

The Questar IR site also has a document with more detail.

  • My brokerage account statement does not report these things. In particular, my 1099-B does not report far enough back to cover the spinoff (only reports 2011 and after stock purchases, not anything before). The transaction history available on my online brokerage account shows all shared purchases prior to the spinoff being credited to Questar. The document you share, however, has the full answer to my question. "...should be allocated between the shares of Questar...stock and the shares...of QEP...stock...in proportion to their fair market values immediately after the [spinoff]." – NeutronStar Mar 18 '17 at 23:52
  • Glad the document helped! When I've held stocks that spunoff, the brokerage account changed the cost basis right after the spinoff. So if, for example, you bought company A at $10/share, and then it spun-off so you got one share of company B which opened at $3/share, your cost basis in company A would then be $7. – Andrew Savikas Mar 19 '17 at 0:02

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