tax basis

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Tax basis

In the context of finance, the original cost of an asset less depreciation that is used to determine gains or losses for tax purposes.
In the context of investments, the price of a stock or bond plus the broker's commission.

Tax Basis

1. The cost of an asset less depreciation. This is used when calculating one's tax liability related to that asset.

2. The all-in cost of a security when it is bought. That is, it is the price of the security plus any applicable fees. This is the price against which any capital gains or losses are calculated for tax purposes. For example, if the tax basis for a stock is $5 per share and the investor sells it for $7, then the capital gain for which one is liable is $2 per share. It is also called the cost basis or simply the basis.

tax basis

See basis.
References in periodicals archive ?
A recovers its tax basis of $500 in the stock of Y and recognizes gain of $2,500 on the sale.
Each STWD stockholder should consult a personal tax advisor regarding the calculation of their tax basis and the tax consequences of any distribution.
Like any other investment a taxpayer makes, a personal residence has an initial tax basis that fluctuates over time.
Tax basis of the property by the caregiver may become critical if the caregiver never establishes the residence as a personal residence.
3) Determined, in the case of the McDermott stock, by dividing the aggregate tax basis allocable to the McDermott shares in the table above by 1,000 (the number of McDermott shares owned before the spin-off) and, in the case of the B&W stock, by dividing the aggregate tax basis allocable to the B&W shares in the table above by 500 (the number of B&W shares received in the spin-off).
81-70 recognizes that in the event of a widely held target company the potential exists for shareholders to not respond to a tax basis inquiry.
170(e)(1) generally limits the deduction for charitable contributions of inventory with an FMV above tax basis to the donor's tax basis in the inventory.
If the selling C corp has operating losses, it may be able to use these losses to shelter the gain on an asset sale, while still giving the buyer a stepped-up asset tax basis.
The fresh start rules were intended to provide for a deemed disposition of property of the business and a deemed reacquisition of that property, with the income, gains, and losses being included in surplus for the final year of active business status, and the income from the FAPI business being computed in subsequent years by reference to the new tax basis of the assets of the business.
If the debt is non-recourse, the debtor recognizes a gain or loss which is measured by how much the total outstanding loan balance exceeds or falls short of the property's tax basis.
The law provides that inherited property takes as its income tax basis the fair market value on the day the owner dies.
704(d) provides that a partner's distributive share of loss is allowable to the extent of the partner's adjusted tax basis in his interest in the partnership at the end of the partnership year in which the loss occurred.