Cost Basis
The original value of an asset for tax purposes, used to calculate gain or loss when you sell.
What does cost basis mean?
Cost basis is usually what you paid, plus certain adjustments. Your taxable gain is the sale price minus the basis. Tracking it accurately is essential to avoid overpaying capital gains tax.
Put it to use
Like Kind Exchange Calculator This calculator is designed to calculate and the recognized loss, gain and the basis for a Like Kind Exchange. Company Stock Distribution Analysis Calculator If you own company stock in a retirement plan you may be able to take advantage of using the long term capital gains tax rate rather than your ordinary income tax rate on this investment.
Related terms
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