The price you originally paid for something. If you purchase stock in Company B for $100 and you sell it for $125, your basis in that stock is $100. Additionally, your gain on the sale of the stock is $25, calculated as your sales price less your basis in the stock.
The amount paid for a capital asset, including commissions and other costs related to the purchase.
Point difference over or under a designated future at which a cash commodity of a certain description is sold or quoted. A most important term for those who hedge.
The original cost, plus out of pocket expenses, of an asset (such as property, stock, or a business interest) that is used to determine gain or loss when the asset is disposed, whether through sale, gift, or bequest. The basis is affected by the nature of the transaction by which the asset was acquired. For example, property received as a gift will have a different method of basis determination than property purchased at fair market value.
see also The difference in price or yield between two different indices.
The financial cost to move natural gas from the Henry Hub to the final deliver point on the pipeline. Basis is defined at the price difference between the cost of a futures contract at Henry Hub and the cash price at the delivery point.
Short for "basis differential," basis is the difference in the value of an underlying commodity between different physical locations and/or different points in time. Basis is most often traded in the form of swaps. By swapping the price of a commodity at one physical location for the price at a different location, traders can capture the basis differential between those two points.
An amount attributed to an asset for income tax purposes; used to determine gain or loss on sale or transfer; used to determine the value of a gift (except donations to charities, which generally are recorded at the current value of the asset at the time the gift is made).
The difference between the cash price of an underlying commodity at a specific location and the price of a futures contract based on that underlying commodity.
The price paid for an investment when you bought it. (This is also known as the " cost basis.") The basis includes any transaction fees for the trade.
The tax cost of the property or asset used to determine the amount of capital gains if the property or asset is sold.
For income and capital gains tax purposes, the value that is used to determine profit or loss when property is sold. Often the basis is what you paid for the property.
The differential that exists at any time between the cash, or spot, price of a given commodity and the price of the nearest futures contract for the same or a related commodity. Basis may reflect different time periods, product forms, qualities, or locations. Cash minus futures equals basis.
The difference between the futures price for any given commodity and the comparable cash or spot price for the commodity.
This is often referred to as cost basis. Normally, basis is the amount you paid for an item, plus the cost of any improvements and minus depreciation if applicable.
The difference between a cash price at a specific location and the price of a particular futures contract.
The difference between the underlying product price and the futures price.
The difference in price between a futures price and the value of the underlying asset.
What it costs to buy something, plus the cost of any improvements and minus the cost of any damages. This is used to figure out how much money someone makes when they sell something.
The price difference between the actual or spot commodity and derivative market valuations.
The difference between the price of a cash commodity at a specific location and the price of a futures contract for that commodity. Basis reflects factors such as transportation costs between the location and the futures delivery point, local supply and demand conditions, and storage.
The basis, or adjusted basis, is the net investment you have in property (tangible or not). In the simplest case it is what you paid for it. But it also includes the cost of improvements made. Any losses or deductions (i.e., depreciation) taken against the property reduces your basis. Often the process of calculating basis on property can become very complicated.
the acquisition cost of an asset; usually the purchase price of the asset, or the basis carrying over from another, less any depreciation taken against the asset
The starting point for determining gain or loss in any transaction. In general, basis is the cost of the exchanger's property.
The difference between the futures price and the current index value.
The cost of the property at the time of acquisition, or value when inherited, plus the cost of certain permanent capital improvements.
Usually, the cost of an asset. Basis is the amount assigned to an asset for tax purposes, so that gain or loss can be computed when the asset is sold. There are special rules to determine the basis of property received because of another's death or by gift, and the basis of stock or property received upon various corporate transactions.
The original cost of an asset plus other capitalized acquisition costs such as installation charges and sales tax. Depreciation charges are computed on the equipment's basis.
The total cost an investor pays to acquire a security or asset. For tax purposes it is used to determine capital gains or losses when the asset is sold.
The starting point for computing gain or loss on an investment; typically, the original purchase price. See also, Adjusted Basis
An amount usually representing the taxpayer's cost in acquiring an asset. It is used for a variety of tax purposes including computation of gain or loss on the sale or exchange of the asset and depreciation with respect to the asset.
This is a tax term relating to the valuation of property for determining profit or loss on sale. If you buy a property for $150,000, your tax basis is $150,000. If you later sell it for $250,000, your taxable profit is $100,000. Certain tax provisions such as Internal Revenue Code section 1031 permit tax to be deferred under certain condition. (see www.1031x.com)
The cost of a capital asset. Basis includes the purchase price and additions to capital.
Original cost of property plus value of any improvements put on by the seller minus the depreciation taken by the seller.
The original amount paid to acquire an asset or the fair market value of an asset on the date it was acquired.
The spot price minus the futures price.
Property owner's "book value" for income tax purposes. Usually the original cost plus capital improvements.
A property's value, for tax purposes, at the time of acquisition, depending on how the taxpayer acquired the property.
The value of an asset for income tax purposes used in computing gain or loss upon disposition of the asset and in calculating depreciation, depletion, or amortization, if applicable.
the cost of property when acquired (or value when inherited), plus the cost of certain permanent improvements.
The difference between the price on the physical market and the futures price
The value assigned to an asset, generally it's purchase price plus the amount of subsequent deposits, that is used to determine a capital gain or capital loss for tax purposes.
Determined for purposes of taxation by the IRS, Initially it is the cost of a property which is then reduced by cost recovery (depreciation) taken. Basis is used to determine taxable gain on the sale of a property.
Cost Basis. The dollar amount assigned to property at the time of acquisition under provisions of the Internal Revenue Code for the purpose of determining gain, loss and depreciation in calculating the income tax to be paid upon the sale or exchange of the property. (2) Adjusted Cost Basis. The cost basis after the application of certain additions for improvements, etc., and deductions for depreciation, etc.
The local cash market price minus the price of the nearby futures contract.
Jargon term for the difference between a futures price and the price of the underlying asset.
The simple difference between 2 nominal interest rates.
Also referred to as cost basis. Cost basis is the monetary value assigned to an asset from which a taxpayer determines capital gain or loss. For assets purchased, the basis is the price paid by the purchaser. Special rules apply to assets acquired through gift or inheritance, as well as to the value of stock funds held for a period during which earnings are reinvested.
Purchase price of the property.
The difference between the current cash price of a commodity and the futures price of the same commodity.
The amount you use to determine your capital gain or loss from a sale or disposition of property. To determine the adjusted cost basis for your property, you must start with the original purchase cost. You then add any out-of-pocket expenses such as brokerage commissions, escrow costs, title insurance premiums, sales tax (if personal property) and other closing costs directly related to the acquisition , your cost of capital improvements and principal payments of special assessments (sewer and streets) to the property, and then subtract depreciation you have taken or were allowed to take, any casualty losses taken and/or any demolition losses taken.
The difference between the cash price and futures price for the same asset. For financial asset, is the futures price less cash price.
A means of valuing investment in property for tax purposes
Is the relationship between an actual or cash market with a futures instrument. The relationship is typically the simple difference between the cash market and the futures.
For tax purposes, the value used as the starting pint in figuring gain or loss, depreciation or depletion.
The difference between the cash or spot price of a commodity and the price of the futures contract for the same commodity. For gas, basis reflects the locational difference between the Henry Hub and a delivery point. The delivery point may be a point on a pipeline or a city gate location.
What you paid for an asset. The value that is used to determine gain or loss for income tax purposes.
The price an investor pays for a security plus any out-of-pocket expenses. It is used to determine capital gains or losses for tax purposes when the stock is sold. Also, for a futures contract, the difference between the cash price and the futures price observed in the market.
The original purchase price or cost of your property plus any out-of-pocket expenses such as brokerage commissions, escrow costs, title insurance premiums, sales tax (if personal property) and other closing costs directly related to the acquisition.
The difference between spot (cash) prices and the futures contract price.
The original acquisition price is the cost basis. Adjusted basis is generally cost basis less any allowance against basis, such as depreciation, plus any additional investment in the asset. Adjusted basis normally is the value used for tax purposes to determine gain or loss.
The difference between the current cash price and the futures price of the same commodity. Unless otherwise specified, the price of the nearby futures contract month is generally used to calculate the basis.
The difference between the price of a futures contract and the underlying commodity's spot (or cash) price.
The difference between cash and future prices in hedge. Formula: Cash - Futures = Basis.
Basis is the amount of your investment in a property for tax purposes. The basis of property is used to calculate your gain or loss on the sale, exchange, or other disposition of your property. It is also used to calculate your deductions for depreciation, amortization, depletion, and casualty losses. If your property is used for both business and personal purposes, the basis must be allocated based on the use. The original basis in your property is adjusted by improvements to your property (increases your basis) and by deductions taken for depreciation or casualty losses (decreases your basis).
Value that is the starting point in computing gain or loss, depletion, amortization and depreciation.
The benefactor’s purchase price for an asset, possibly adjusted to reflect subsequent costs or depreciation. If Mrs. Quinn bought stock for $100 per share and sold it for $175, her cost basis in the stock is $100 per share.
Generally, a person's investment in property for income-tax purposes used in determining his/her taxable gain or loss upon a sale or exchange; it may be “stepped up” (increased) at death to the fair market value reported on the estate tax return (original cost).
The value of property for income tax purposes, which is usually computed as the sum of original cost of improvements, plus capital improvements, less accrued depreciation. (See U.C.C.)
Basis is the amount of your investment in a property for tax purposes. Basis of property you buy is usually its cost; however, basis in some assets cannot be determined by cost. If you did not acquire property through purchase (such as through gift, inheritance, trade, or exchange), basis may be determined as the fair market value or as adjusted basis. The basis of property is used to calculate your gain or loss on the sale, exchange, or other disposition of your property. It is also used to calculate your deductions for depreciation, amortization, depletion, and casualty losses. If your property is used for both business and personal purposes, the basis must be allocated based on the use.
The set of assumptions (eg mortality rates, interest rates, price inflation) used in an actuarial calculation. A strong basis is one that leads to conservative (je high) estimates of liabilities. Conversely, a weak basis will give low estimates of the value of liabilities.
The initial amount paid for a property, plus money spent improving the property, minus depreciation
The difference between the cash price and the futures price of a commodity. CASH - FUTURES = BASIS. Basis also is used to refer to the difference between prices at different markets or between different commodity grades.
The financial interest which IRS attributes to the owner of an asset for purposes of determining annual depreciation and gain or loss on sale of the asset.
The price differential between different markets, products or locations
The dollar amount that the Internal Revenue Service attributes to an asset for purposes of determining annual depreciation or cost recovery, and gain or loss in the sale of the asset. The determination of basis is of fundamental importance in tax aspects of real estate investment. All property has a basis. If property was acquired by purchase, the owner's basis is the cost of the property plus the value of any capital expenditures for improvements to the property, reduced by any cost recovery depreciation actually taken or allowable. The basis is also reduced by any untaxed gain "carried over" to the new property in cases where the new property is a replacement of a former residence or is acquired through a like'king exchange or through an involuntary conversion. This new basis is called the property's adjusted basis. (See adjusted basis, depreciable basis, original basis)
The financial interest one has in a property for tax purposes. Basis is adjusted down by depreciation and up by capital improvements.
The purchase price of an asset to determine annual depreciation or cost recovery, and gain or loss on the sale of the asset.
The difference between the spot price and the futures price.
The Book Value of a property considered for tax reporting purposes.
The original price paid by an investor.
In its most general definition, the basis is the cost of the property. It is usually the starting point for determining gain or loss in any transaction.
The amount you use when determining gain or loss for tax purposes.
The amount that is subtracted from sales proceeds to determine gain or loss for income tax purposes.
The historical difference between the local cash price and the price of the near month futures contract.
The price paid for appreciable property plus the value of improvements less any depreciation taken on the property.
System of measuring investment in property for tax purposes. Example: Original cost, plus improvements, minus depreciation taken.
Regarding a futures contract, the difference between the cash price and the futures price observed in the market. Also, it is the price an investor pays for a security plus any out-of-pocket expenses. It is used to determine capital gains or losses for tax purposes when the stock is sold.
Basis is the amount of your investment in property for tax purposes. The basis of property you buy is usually the cost. Basis is used to figure gain or loss on the sale or disposition of investment property.
Used in determining depreciation or gain or loss on the sale of property. In the simplest situation, your basis in property you purchase is the cost. For example, you pay $1,000 for a machine--that's your basis. How you acquire the property determines your basis. For example, if you inherited the machine, your basis would be the fair market value at the decedent's death. In a simple tradein, your basis is equal to your adjusted basis (see above) in the equipment traded in plus any cash paid. If you contributed the property to a corporation, the corporation's basis would be the basis of the property in your hands. Your basis in the stock in an S corporation is your cost plus profits taxed to you less losses passed through and distributions. There are a number of other ways of arriving at basis. Please see Adjusted Basis, above.
Original cost of an investment or asset plus any out-of-pocket expenses incurred that must be reported to the IRS when that investment or asset is sold at a gain or loss. The basis must be determined in order to calculate a gain or loss. (See Adjusted Basis)
The gap between the active futures price and the implied forward price of the underlying commodity. futures
The difference between the current cash price and the futures price of the same commodity for a given contract month.
In general, the amount invested in a capital asset acquired by purchase. The basis of property acquired by other means is determined by the method of acquisition; see page 21 for how to determine the basis of an asset acquired by gift or inheritance. Also see “Adjusted basis,” “Cost basis,” “Original basis,” “Stepped-up basis,” and “Volume basis.
(1) Bonds: An investor's yield to maturity. (2) Taxation: Cost used to determine capital gain or loss on an investment. (3) Used in DPP's to calculate maximum losses allowed for tax purposes. In general, basis consists of the investor's original contribution plus recourse loans.
The acquisition cost of an asset, used to calculate gains and losses.
The difference between simultaneous prices for cotton futures and spot cotton. It may be quoted by reference to any futures month. For example the "March basis" would mean the difference between the current price of March futures and the simultaneous quoted value of any given grade and staple of spot cotton. The growth is usually quoted in terms of points on or off the applicable month trading at the New York Cotton Exchange according to the calculated difference. (See also New York Cotton Exchange)
The starting point for computing gain or loss on a sale or exchange of property or for depreciation. (See "Adjusted basis.") For property that is purchased, basis is its cost. The basis of inherited property is its value at the date of death (or alternative valuation date). The basis of property received as a gift or a nontaxable transaction is based on the adjusted basis of the transferor (with some adjustments). Special rules govern property transferred between corporations and their shareholders, partners and their partnership, etc.
The difference between cash prices and the futures contract prices.
The original cost of an asset plus other capitalized acquisition costs such as installation charges and sales tax. Basis reflects the amount upon which depreciation charges are computed.
The amount assigned to an asset from which gain or loss is determined for income tax purposes when the asset is sold. For assets acquired by purchase, basis is cost. Special rules govern the basis of property received by virtue of another's death or by gift, the basis of stock received on a transfer of property to a controlled corporation, the basis of the property transferred to the corporation, and the basis of property received upon the liquidation of a corporation.
The starting point for determining gain upon the disposition of any asset. In its simplest form, basis is an owner's investment in the asset.
Basis, a tax and accouning term, is the measuring rod against which gain or loss is measured. With stock, basis is what you pay for stock or the fair market value of property you contribute in exchange for the stock.
this is the initial cost--which the IRS uses to determine an individual's tax liability--of investments.
Usually the cost of an asset. In the case of property, it=s the cost including debt obligations and some taxes.
Original cost of property plus value of any improvement put on by the seller and minus the depreciation taken by him.
A measure of an individual's investment in property for tax purposes.
An accounting term that refers to the cost of an asset including all adjustments and improvements. For tax purposes, it is the amount you subtract from the net sale price to determine the realized gain or loss. For example, if you paid $150,000 for your home, but added a porch for $25,000, your basis is now $175,000. You have stepped-up the basis.
The tax basis of property, or more simply, the cost of an asset.
The point from which gains, losses, and depreciation deductions are computed.
The amount paid for an asset. Capital gains tax is paid on capital gains that are measured by the difference between the selling price and the basis. Property that is inherited receives a "step up" in basis so that the basis- to the person inheriting the property- is what the property was worth at the time of inheritance. A person receiving property by a lifetime gift has the same basis as the previous owner.
The difference between the cash price of the underlying position to be hedged minus the price of the hedge instrument.
The original cost of an asset; may be adjusted by several factors such as cost of certain improvements to the property, depreciation, etc. The taxable gain on the sale of an asset is the net sales price less adjusted basis. When the owner of property dies the basis is "stepped-up" to the value at the date of death.
A spread. Often the spread between a futures price and the spot price of its underlier.
The original price paid for a property or investment.
The cost of a property, including improvements, refinancing costs, closing costs and similar costs, less depreciation. Basis is used for tax purposes to calculate any profit or loss realized on sale of a property. This profit is subject to capital gains tax.
The relationship between two securities or markets (cash and derivative) that can change giving rise to 'basis risk'.
The value assigned to an asset from which taxable gain or loss is determined when the asset is sold. Generally, for an asset acquired by purchase, basis is the cost of of the asset (plus certain improvements in the case of a home). It also includes other costs (such as commissions) that are related to acquiring the asset. Special rules apply to inherited property and gifts.
The original cost and any additional outlays represent the cost basis in equity investments or property. The Internal Revenue Service computes the taxable gain, profit, or appreciation on the difference between the basis and the actual amount of sale. Therefore, defining basis as original price, and not as total cost, may incorrectly result in an inflated tax liability.
The financial interest that the Internal Revenue Service attributes to an owner of an investment property for the purpose of determining annual depreciation and gain or loss on the sale of the asset. If a property was acquired by purchase, the owner's basis is the cost of the property plus the value of any capital expenditures for improvements to the property, minus any depreciation allowable or actually taken. This new basis is called the adjusted basis.
The price paid for a security by an investor plus any out of pocket expenses.
In futures markets, the price differential between the price of the asset underlying the futures contract and the price of the futures contract.
The cost (including delivery, installation, transaction, and other costs) of an asset upon which depreciation for tax and/or accounting purposes is calculated.
Basis is a term that refers to the difference between the cash price and the futures price in a futures contract. It also is the price an investor pays for a security. When an investor sells a security, the basis is used to calculate the amount of capital gains or losses for tax purposes.
Basis is price difference between a cash contract and a futures contract.
The difference in price or yield between a futures position and the financial instrument being hedged: a difference that can change during the hedge period to produce a basis gain or a basis loss.
An investor's total investment in an asset, includ... Add a comment
The difference between the spot or cash price of a commodity and the price of the nearest futures contract for the same or a related commodity. Basis is usually computed in relation to the futures contract next to expire and may reflect different time periods, product forms, qualities, or locations.
The financial interest an owner of an investment property has, as determined by the Internal Revenue Service, in order to determine annual depreciation and gain or loss on the sale of the asset Adjusted Basis: When property is purchased, the owner's basis
See Cost Basis or Adjusted Cost Basis.
Basis is the total cost of buying an investment or other asset, including the price, commissions, and other charges. If you sell the asset, you subtract the basis from the selling price to determine your capital gain or capital loss. If you give the asset away and the recipient sells it, the basis is the same amount that you would have used had you sold. But if you leave the asset in your will, the person receives it at a step up in basis, which means the basis of the asset is reset to its market value as of the time of your death. When your investment is in real estate, basis is generally described as cost basis.
In GL, a curve or patch basis is a 4x4 matrix that controls the relationship between control points and the approximating spline. B-splines, Bezier curves, and Cardinal splines all differ in that they have different bases.
The difference between the price of a futures contract and that of the underlying asset. Calculated by subtracting the futures price from the cash price.
The difference at any given time between the cash or spot price of a commodity and the price of a futures contract or related commodity or derivative. “Short of the basis†means a seller of spot goods is hedged by the purchases of futures. “Long of the basis†means a buyer of spot goods has hedged them by the sale of futures. A basis point is one percent of one percent.