What is the cost basis on agilent shares split off from Hewlett Packard

**Bottom line 📝** For the 2000 tax-free spin-off in which Hewlett-Packard (then ticker HWP) distributed 0.3814 shares of Agilent Technologies (A) for each share of HP you owned, the IRS-approved allocation is: • 78 % of your original Hewlett-Packard cost basis stays with your HP shares. • 22 % of that original basis is assigned to the new Agilent shares you received. --- ### How to compute your Agilent cost basis 1. Find your historical cost basis in Hewlett-Packard (what you paid for the shares you held on the November 2000 record date). 2. Apply the 22 % allocation to that basis to determine the **total basis for all Agilent shares** received. 3. Divide that Agilent total basis by the exact number of Agilent shares issued to you (0.3814 × your HP share count) to get the **per-share basis**. 🔍 Example • You originally bought **100 HP shares** for **$5,000**. • Spin-off distribution: 100 × 0.3814 = **38.14 Agilent shares**. • Basis re-allocation: – HP: $5,000 × 78 % = **$3,900** (remains with your 100 HP shares). – Agilent: $5,000 × 22 % = **$1,100** (total basis for 38.14 Agilent shares). • Agilent **per-share basis**: $1,100 ÷ 38.14 ≈ **$28.85**. Your **holding period** for the new Agilent shares is considered to start on the same date you originally bought the corresponding HP shares (i.e., it’s tacked on). --- ### Next steps & caveats ⚖️ • Confirm your original HP purchase dates and cost (including any reinvested dividends) before applying the percentages. • Retain documentation (broker statements or trade confirms) showing the original HP basis and the spin-off ratio. • If you acquired HP shares at different times or prices, compute the allocation separately for each tax lot. • Always verify with your tax professional, especially if you later sold, gifted, or transferred either HP or Agilent shares—the precise basis affects your capital-gain calculations. Is there anything else around historical cost allocations or subsequent corporate actions you’d like to review? 🧐 : “Important U.S. Tax Information for Agilent Spin-Off,” Hewlett-Packard investor FAQ (PDF, June 2000): 78 % of pre-distribution basis to HP, 22 % to Agilent.