How do I calculate cost basis after the spin-offs of HSN, Inc., Ticketmaster, Interval Leisure Group, Inc. and Tree.com?
While we cannot tell you how to calculate your cost basis for the reasons discussed above, the following data points should assist you with your calculation. For every share of IAC that you owned prior to the spins, you received 1/5th of a share of HSNi, Ticketmaster, ILG and 1/30th of a share of Tree.com. On August 20, 2008, the day before IAC, HSNi, Ticketmaster, ILG and Tree.com began trading as independent public companies, the closing prices of common stocks of each in the “when-issued” market were $15.36, $12.61, $21.64, $14.12 and $7.42, respectively. The resulting split in value between IACI, HSNI, TKTM, IILG and TREE taking into account these prices and the share allocations above was approximately 44%, 14%, 25%, 16%, and 1%, respectively.
