Explore the meaning of "basis" in finance, focusing on its tax implications and role in investment transaction. Learn how it affects capital gains and cost analysis.

The Treasury basis trade simply consists of selling Treasury futures and buying Treasuries, and using massive dollops of ...

Basis points are often used in accounting and in the financial services field to simplify percentages written in decimal form. Basis points are sometimes used because they don't require the accountant ...

Learn what basis value is, how to calculate it, and see examples to understand its role in reducing tax burdens on fixed assets when sold.

The tax code attempts to tax income each time it is received by a new taxpayer. Shareholders obtained their investments using money that was already subject to income tax, and that investment forms ...

I am a CPA specializing in helping busy business owners decrease the amount of time and energy they need to manage their accounting system. It’s tax preparation season, and like most business owners, ...

Cost basis is the original purchase price of an asset. Tracking cost basis is key to tax-efficient investing. Many, or all, of the products featured on this page are from our advertising partners who ...

Basis risk refers to the potential mismatch between the value of an asset or liability and the financial instrument used to hedge or manage its risk. This divergence can result in unexpected gains or ...

Calculating the cost basis of cryptocurrency for tax purposes involves considering purchase prices, transaction fees and events such as hard forks or staking rewards. In the context of ...

The IRS issued final regulations (T.D. 10028) Friday that identify certain partnership related-party basis-shifting transactions and substantially similar transactions as transactions of interest ...

Inheriting an asset grants a step-up in basis, setting cost basis to FMV at death, reducing capital gains tax. Controversy surrounds step-up in basis, as it significantly lowers taxes on inherited ...

The partnership distribution rules create disparities between inside and outside basis in two common situations: (1) when the distributee partner recognizes gain or loss[8] on a distribution and (2) ...