Hard-Fork Basis Split

Allocate original basis between hard-fork assets by supplied fair values.

Description

A hard-fork basis scenario divides an existing basis in proportion to two supplied fair values.

A hard-fork basis scenario divides an existing basis in proportion to two supplied fair values. This is a proportional allocation model rather than a determination of income recognition.^[1]

Allocate original basis between hard-fork assets by supplied fair values.

When to use Hard-Fork Basis Split

Use this tool to allocate original basis between hard-fork assets by supplied fair values.

Choose the specific arithmetic or checklist scenario and establish its input amounts, dates, rates and criteria from the applicable records. Keep currencies, periods and jurisdictions consistent; review the tool-specific assumptions before interpreting the result.

How to use Hard-Fork Basis Split and understand its results

Choose the specific arithmetic or checklist scenario and establish its input amounts, dates, rates and criteria from the applicable records. Keep currencies, periods and jurisdictions consistent; review the tool-specific assumptions before interpreting the result.
Enter originalBasis, originalTokenFairValue, forkTokenFairValue using the field table and calculation rules, then run the tool.
Read originalTokenBasis, forkTokenBasis, forkBasisPercent. The explanation below defines the units, signs, ordering and any flags or placeholder values.
If the tool reports an input issue, correct the values and run it again. Apply the stated assumptions when interpreting a successfully returned result.

Input field	Meaning	Value type; see rules below	Requirement
originalBasis	Original token basis	number; minimum: 0	Required
originalTokenFairValue	Original-token fair value	number; minimum: 0	Required
forkTokenFairValue	Fork-token fair value	number; minimum: 0	Required

Enter nonnegative basis and both values with a positive combined value. Return allocations and fork-basis percentage. If total basis is zero the reported percentage is zero even when fork value is positive.

oldBasis=totalBasis×oldValue/(oldValue+forkValue); forkBasis=totalBasis−oldBasis

Units, indexing, boundary conditions and exceptional cases are defined in the calculation rules above.

Output field	Meaning	Value type
originalTokenBasis	Basis allocated to original token	number; minimum: 0
forkTokenBasis	Basis allocated to fork token	number; minimum: 0
forkBasisPercent	Basis allocated to fork (%)	number; minimum: 0; maximum: 100

json

{
  "input": {
    "originalBasis": 1000,
    "originalTokenFairValue": 750,
    "forkTokenFairValue": 250
  },
  "output": {
    "originalTokenBasis": 750,
    "forkTokenBasis": 250,
    "forkBasisPercent": 25
  }
}

Limitations and assumptions

Fork recognition, asset control, tax basis rules and valuation timing are not determined. Use only when the proportional-allocation assumption fits the scenario.

Numeric inputs must be finite. Follow the calculation-specific rules for overflow, underflow and exceptional cases. Missing required fields, extra fields, wrong value types and violations of the calculation rules are input errors.

Alternative or Complementary methods

Use Airdrop Income: Calculate airdrop income and per-token basis from supplied fair value. For a complementary task, use Liquidity-Pool Gain: Model liquidity-pool contribution gain from caller-supplied basis and value.

References

Hard-Fork Basis Split — tool.io

Similar or alternative tools

Airdrop Income
Calculate airdrop income and per-token basis from supplied fair value.
Liquidity-Pool Gain
Model liquidity-pool contribution gain from caller-supplied basis and value.