Basis

Authors

Dennis Kauppila, University of Vermont

Files

Description

Basis is a short version of the term ‘Adjusted Tax Basis.’ Basis measures an owner’s investment in an asset. Usually basis decreases each year by the amount of depreciation taken on the asset. When it comes time to sell an asset, basis is just about the only thing that can lower the tax bill. Gains (which are taxable) are figured using basis, so keeping track of the adjusted tax basis of assets is important. This is how basis is used to figure a gain:

Sales Price - Basis = Gain.

Publisher

Rural Tax Education

Publication Date

8-2012

Keywords

sales, gains, basis

Disciplines

Education | Higher Education | University Extension

Recommended Citation

Kauppila, Dennis, "Basis" (2012). Rural Tax Education. 31.
https://digitalcommons.usu.edu/rural_tax/31