tax basis
See: basis
Category: Personal Finance & Retirement → Taxes
Category: Real Estate & Rental Property → Selling a House
Category: Wills, Trusts & Estates → Estates, Executors & Probate Court

Nolo’s Plain-English Law Dictionary. . 2009.

tax basis
USA
basis, Also known as tax basis.
The amount of a taxpayer's investment in property for tax purposes.
The basis of purchased property is usually its cost plus certain expenses (referred to as a cost basis). If property is acquired by gift, inheritance, in a tax-free reorganization or in some way other than purchasing it, the property will have a basis other than its cost (for example, see carryover basis).
Basis is often increased or decreased for various tax-related items. The result of these adjustments to the basis is the adjusted basis. A taxpayer needs to know its basis (or adjusted basis if applicable) to figure any gain or loss on the sale or other disposition of the property or any allowable depreciation, depletion, or amortization deductions.
See also

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

Look at other dictionaries:

  • 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. Bloomberg Financial Dictionary In the context of investments, the price of a stock or bond plus the broker s… …   Financial and business terms

  • tax basis — See basis …   Black's law dictionary

  • After-Tax Basis — The basis for weighing the performance of two investments against each other after taxes have been factored into the equation. After tax basis calculations are often used to compare yields between taxable bonds, such as corporate securities, and… …   Investment dictionary

  • after-tax basis — The comparison basis used to analyze the net after tax returns on a corporate taxable bond and a municipal tax free bond. Bloomberg Financial Dictionary …   Financial and business terms

  • basis — ba·sis / bā səs/ n pl ba·ses / ˌsēz/ 1: something (as a principle or reason) on which something else is established the court could not imagine any conceivable basis for the statute see also rational basis 2: a basic principle o …   Law dictionary

  • Basis — 1. The variation between the spot price of a deliverable commodity and the relative price of the futures contract for the same actual that has the shortest duration until maturity. 2. A security s basis is the purchase price after commissions or… …   Investment dictionary

  • Tax free acquisition — A merger or consolidation in which 1) the acquirer s tax basis in each asset whose ownership is transferred in the transaction is generally the same as the acquiree s, and 2) each seller who receives only stock does not have to pay any tax on the …   Financial and business terms

  • tax free acquisition — A merger or consolidation in which (1) the acquirer s tax basis on each asset whose ownership is transferred in the transaction is generally the same as the acquiree s, and (2) each seller who receives only stock does not have to pay any tax on… …   Financial and business terms

  • Tax forms in the United States — are used by taxpayers and tax exempt organizations to report financial information to the Internal Revenue Service (IRS). They are used to report income and calculate taxes owed to the government of the United States. TOC Federal tax forms 990… …   Wikipedia

  • Tax system in China — Taxes provide the most important revenue source for the Government of the People s Republic of China. As the most important source of fiscal revenue, tax is a key economic player of macro economic regulation, and greatly affects China s economic… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”