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Basis 108
Basis may refer to: Finance and accounting * Adjusted basis, the net cost of an asset after adjusting for various tax-related items * Basis point, 0.01%, often used in the context of interest rates *Basis trading, a trading strategy consisting of the purchase of a security and the sale of a similar security **Basis of futures, the value differential between a future and the spot price **Basis (options), the value differential between a call option and a put option **Basis swap, an interest rate swap *Cost basis, in income tax law, the original cost of property adjusted for factors such as depreciation *Tax basis, cost of an asset and technology *Basis function *Basis (linear algebra) **Dual basis **Orthonormal basis **Schauder basis *Basis (universal algebra) *Basis of a matroid *Generating set of an ideal (ring theory), ideal: **Gröbner basis **Hilbert's basis theorem *Generating set of a group *Base (topology) *Change of basis *Greedoid *Normal basis *Polynomial basis *Radi ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Adjusted Basis
In tax accounting, adjusted basis is the net cost of an asset after adjusting for various tax-related items. Adjusted Basis or Adjusted Tax Basis refers to the original cost or other basis of property, reduced by depreciation deductions and increased by capital expenditures. Example: Brad buys a lot for $100,000. He then erects a retail facility for $600,000, then depreciates the improvements for tax purposes at the rate of $15,000 per year. After three years his adjusted tax basis is $655,000 100,000 + $600,000 - (3 x $15,000) Adjusted basis is one of two variables in the formula used to compute gains and losses when determining gross income for tax purposes. The Amount Realized – Adjusted Basis tells the amount of Realized Gain (if positive) or Realized Loss (if negative). Statutory definition Section 1012 of the Internal Revenue Code defines “basis” as a taxpayer’s cost in acquiring property, except as provided in Sections 1001-1092. Section 1016 then lists 27 ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |