Tax Basis
/ˈtæks ˌbeɪsɪs/
Definitions
- (n.) The original value of property for tax purposes, used to determine gain or loss upon sale or disposition.
The tax basis of the stock was its purchase price plus any commissions paid.
- (n.) The adjusted value of an asset after accounting for improvements, depreciation, or other tax-related changes.
Improvements increased the tax basis of the residential property, reducing taxable gain.
Related terms
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Commentary
Tax basis is fundamental in calculating taxable gain or loss; accurate tracking of adjustments is critical for tax compliance.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.