WHAT IS considered cost basis
In most situations, the basis of an asset is its cost to you. The cost is the amount you pay for it in cash, debt obligations, and other property or services. Cost includes sales tax and other expenses connected with the purchase. Cost Basis. Cost basis is the original value of an investment, adjusted for stock splits, certain types of dividends, and return of capital distributions. An investment's original value is usually just the initial purchase price of that investment. Cost basis is most often used for tax purposes. Cost Basis. Cost basis is the original value of an investment, adjusted for stock splits, certain types of dividends, and return of capital distributions. An investment's original value is usually just the initial purchase price of that investment. What cost basis is. In its broadest sense, cost basis refers to the price you paid for your shares. That figure is adjusted upward for reinvested dividends and capital gains and any commissions or transaction fees you paid. What cost basis won't necessarily tell you is how much money you made on an investment. For instance, if the donor's cost basis in an asset is $50,000, he transfers the asset as a gift when it is worth $100,000, and he pays a gift tax of $20,000, the appreciation in value ($50,000) accounts for one-half of the asset's value at the time of the gift. Cost basis is generally the price you paid for your shares, adjusted for return of capital, certain corporate actions, and any sales charges or transaction fees. Cost basis is an important calculation used to determine gains and losses on any shares you sell in a taxable (non-retirement) account. Use your basis to figure depreciation, amortization, depletion, casualty losses, and any gain or loss on the sale, exchange, or other disposition of the property. In most situations, the basis of an asset is its cost to you. The cost is the amount you pay for it in cash, debt obligations, and other property or services. Cost basis is most often used for tax purposes. When an asset is sold, it is used to determine the capital gain or loss, which is the difference between the asset's cost basis and its current market value. Use your basis to figure depreciation, amortization, depletion, casualty losses, and any gain or loss on the sale, exchange, or other disposition of the property. In most situations, the basis of an asset is its cost to you. What cost basis is. In its broadest sense, cost basis refers to the price you paid for your shares. That figure is adjusted upward for reinvested dividends and capital gains and any commissions or transaction fees you paid.
Cost basis is the original value of an investment, adjusted for stock splits, certain types of dividends, and return of capital distributions.