tax basis
Finance: original cost of an asset , less accumulated depreciation , that goes into the calculation of a gain or loss for tax purposes.
Tax Basis
Financial & Investment Dictionary:
Tax Basis
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After-tax Basis
After-tax Basis definition :
The comparison basis used to analyze the net after-tax returns on a corporate taxable bond and a municipal tax-free bond.
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AFTER-TAX BASIS - The comparison basis used to analyze the net after-tax returns on a corporate taxable...
AFTER-TAX CASH FLOW - The net proceeds from an income-producing property, after all costs (taxes, mortg...
However, the tax basis of the new equipment will be equivalent to the adjusted basis of the old equipment, plus any additional cash you paid for the new equipment.
Tax basis
In the context of finance, the original cost of an asset less depreciation that is used to determine gains or losses for tax purposes.
Tax books ...
Aftertax Basis
It is the basis for comparing the return of a tax-free bond to a corporate bond. The basis lets the investor know what tax-free yield is required in order to receive the equivalent or greater return of a corporate yield.
After-Tax Basis
The basis for weighing the performance of two investments against each other after taxes have been factored into the equation.
The tax basis may be improperly computed in cases where the taxpayer acquired the property by inheritance or as a gift. For example, when a taxpayer inherits property their tax basis is generally equal to the FMV on the date of death.
after-tax basis The standard used to compare rates of return between a corporate taxable bond and a municipal tax-free bond. after-tax contributions Any kind of Contributions to a retirement plan which are subject to federal income tax.
Greenmail Gross Income Guaranty Head of Household Hedge Historical Cost Holding Period Hope Scholarship Credit IASC Improvement Imputed Interest Income Income Statement Income Tax Basis ...
See: Secondary market.
After-tax basis
The comparison basis used to analyze the net after-tax returns on a corporate taxable bond and a municipal tax-free bond.
After-tax profit margin ...
Tax free acquisition A merger or consolidation in which (1) the acquirer's tax basis on each asset whose ownership is transferred in the transaction is generally the same as the acquiree's, ...
See: Tax basis. Acquisition of assets A merger or consolidation in which an acquirer purchases the selling firm's assets. Acquisition of stock A merger or consolidation in which an acquirer purchases the acquiree's stock.
Equity See stock Equivalent taxable yield The taxable return that must be achieved in order to equal, on an after-tax basis, a given tax-exempt return.
Tax-exempt sector The municipal bond market where state and local governments raise funds. Bonds issued in this sector are exempt from federal income taxes. Tax free acquisition A merger or consolidation in which 1) the acquirer's tax basis on each ...
TAX BASIS -- Term used in the US to refer to an amount that represents the taxpayer's investment in an asset.
TAX BILL -- Draft law on a tax matter which, after approval by the government of a country, is submitted to the Parliament for debate.
To increase, as in step up the tax basis of an asset.
Popular terms
Present value of growth opportunit...
Times-interest-earned ratio
BIS ratio
Internal Rate of Return (IRR)
Return on equity (ROE)
Long-term debt ratio
Dept/equity ratio ...
There are six tax areas to understand, including -- flow through accounting, tax basis, return of capital, passive loss rules, recapture and zero basis.
Under section 401(K) of the Internal Revenue Code, a deferred compensation plan set up by an employer so that employees can set aside money for retirement on a pre-tax basis.
401(k): A type of retirement savings plan, which permits an employee to defer part of his or her compensation on a pre-tax basis. Earnings on the money contributed to the plan also grow tax-deferred.
return-on-capital rate and can be applied either on a before-tax basis or
an after-tax basis. A business should earn at least its weighted-average
rate on the capital invested in its assets. The weighted-average cost-ofcapital ...
To qualify, a corporation's gross assets cannot exceed $50 million (on a tax basis), and at least 80 percent of the company's assets by value must be used in the active conduct of one or more qualified trades or businesses.
By investing in 457(b) plans, their contributions are made on a pretax basis (before taxes are deducted from paychecks).
Participants may defer money on a pretax basis and some programs offer a matching contribution. A nonqualified program can also be designed like a qualified defined benefit program to provide for a predetermined benefit payable at some future date.
Companies are required to report the affect of certain extraordinary items on an after tax basis. However there are often a number of other unusual and one-time items that are affecting net income.
401(k) Plan - A deferred compensation plan set up by an employer so that employees can set aside money for retirement on pre-tax basis. Employers may match a percentage of the amount that employees contribute to the plan.
Definition: [crh] A merger or consolidation in which (1) the acquirer's tax basis on each Definition: HREF="/?
A merger or consolidation in which 1) the acquirers tax basis on each asset whose ownership is transferred in the transaction is generally the same as the acquirees, and 2) each seller who receives only stock does not have to pay any tax on the gain ...
The cost of capital is the minimum acceptable rate of return (usually on an after-tax basis) required by the management of the firm to be earned by a capital expenditure. In making this determination, the level of risk is considered.
A Dependent Care Reimbursement Account allows employees to set aside part of their salary each pay period on a pre-tax basis to reimburse eligible expenses incurred for the care of their child or other dependent who is physically or mentally ...
Roth 401k plans are similar to traditional 401k plans except that workers contribute wages on an after-tax basis. These contributions are invested, and the worker pays no tax when he begins receiving distributions.
A rate of return on an investment on an after-tax basis and adjusted for inflation.
Agency. A relationship between a principal and an agent who acts on behalf of the principal in a transaction with a third party.
When a fund pays out more income than it earned during the course of a year on a tax basis, the excess is called a "return of capital" and is reported on Form 1099-DIV as a nontaxable distribution.
tax code, 403(b) plans are offered by employers to allow employees to save for retirement on a pre-tax basis. Unlike 401(k) plans, 403(b) plans are only available to employees of certain tax-exempt organizations, public schools and civil governments.
See also: Actual, Arbitrage, Basis Grade, Basis Risk, Cash Settlement, Cost Basis, Delivery Month, Narrow Basis, Tax Basis, Wide Basis
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Assay
Basis point
Basis Point - BPS
Basis Price
Basis Quote ...
401(k) Plan: A qualified retirement plan that is funded by the employee on a pre-tax basis for retirement purposes. Employers can also contribute.
Under section 457 of the Internal Revenue Code, employees of state or local governments, their agencies, and tax-exempt employers can set aside money for retirement on a pre-tax basis through a plan sponsored by their employer.
Salary Reduction Plan: A qualified retirement program in which employees make tax advantaged contributions on a pre-tax basis.
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The original Bankers Trust RAROC system provided results on an after-tax basis. Today, systems typically perform calculations before tax. The 1988 Basel Accord was apparently motivated by Bankers Trust's RAROC system.
plan for self-employed persons, named after the New York State congressman who introduced the bill in the mid-1960's. Prior to passage of this bill, self-employed individuals had no means of saving for their retirement on a before-tax basis.
This disallowed loss of $100 would be added to the cost of the new shares you bought in order to give you your tax basis for the holdings. You will use this basis when you sell the repurchased shares.
Fair market value is often used for tax purposes; fair market value on the date of death may be used to establish a later tax basis for any heirs.
adjusted for stock splits, dividends and return of capital distributions. This value is used to determine the capital gain, which is equal to the difference between the asset's cost basis and the current market value. Also known as "tax basis".
Therefore, cash inflows and outflows associated with a particular investment should be carefully analyzed on an after-tax basis.
The cash value of life insurance less the amount of loans against it is an asset. Deferred income tax on the difference between the income tax basis and estimated current values is presented between liabilities and equity.
The principal disadvantage of HOLDRs is that any investor who breaks them up will find that keeping track of the tax basis and tax consequences associated with subsequent transactions in the component securities may be relatively complex.
Roth accounts An IRA or 401(k) retirement account created by congress in 1997. Savings to these accounts grow tax-free, but contributions are made on a pre-tax basis. Round lot A trading order unit usually in some multiple of 100 shares.
 See also: Expense, Saving, Values, Bills, Banks
  
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