cost basis
Original purchase price
Cost basis is the original value of an asset for tax purposes, typically what you paid for it plus associated costs like commissions or fees.
When you sell, your taxable gain or loss is calculated from this baseline: The stock's cost basis was $50 per share, so selling at $75 meant a $25 gain.
Adjustments occur for stock splits, reinvested dividends, or inherited property.
- depreciationAsset value reduction over time
- dateSpecific day or outing
- capital gainsProfit from asset sales
- capital lossSelling asset below purchase price
- salvage valueAsset's worth when retired
amortization · tax deduction · carryover · holding period · gifted · estate planning · write-down · inherited · market value · residual value · intrinsic value · FIFO · step up · taxable income · fair value · ledger · adjusted gross income · shares
- financebank, CFO, banks, controller, finance
- investingstocks, stock, bonds, investing, investor
- business taxestax returns, tax filing, tax deductions, deductions, taxable income
- cost analysisdirect costs, fixed costs, unit costs, operating expenses, operating expense
- Tax Rulesdeductions, credits, exemptions, filing status, withholding
- cost accountingdirect costs, indirect costs, fixed costs, variable costs, overhead
cost basisfair market value
Objective exchange price
present value · market price · current value · appraised value · book value
cost basissale proceeds
Money received from selling
capital gain · return on investment · profit · loss · net proceeds