Cost Basis

If the donor's cost basis of $20 is used, this would produce a loss for the recipient. However, the $20 can be used only when the recipient has a gain, so that's out. If the FMV of $10 is used, this would produce a gain for the recipient.

Cost basis is used to determine capital gains and losses. Generally, cost basis is the original price of a security, including commissions and applicable fees. There are special rules for determining basis in some situations (i.e.

Cost Basis - The purchase price you paid for your stock. You need this for tax purposes. Desktop Computer - The larger computers that sit on a desk and are not mobile.

Cost basis Basis is the purchase price of any property including improvements or depreciation on that property. Basis is used as a baseline for determining capital gains tax on any investment or property. It is also used to figure tax deductions.

Cost basis: The original price at which you purchased an investment. Coupon: The interest rate paid on a debt security, such as municipal bond. The issuer of the security agrees to pay this coupon rate to the bondholder until maturity.

Cost basis The original price of an asset, used to determine capital gains.

Cost Basis: The cost of a given share or group of stock shares. Countermove: A price bar showing movement opposite to the direction of the prior time period.

Cost basis: In accounting, the valuation of an asset that includes the cost of the asset and factors in items like depreciation, capital gains, and dividends.

Cost basis: See Basis. Coterminous: Overlapping debt, such as the bonds of a city and a school district where both debts are being paid by the same tax base (taxpayers).

Cost Basis The purchase price of an investment, used to calculate capital gains when the investment is sold. Current Yield The annual return on an investment stated as a percentage of the actual amount invested.

A downside of using DRIPs is that the investor must keep track of cost basis for many small purchases of stock, and maintain records of these purchases in paper or electronic form.

(5) Accounting equation: total assets of an entity equal total liabilities plus owners' equity; (6) Accounting period: financial records pertaining only to a specific period are to be considered in preparing accounts for that period; (7) Cost basis: ...

The calculation is as follows: Net Proceeds + Dividends / Cost Basis - 1. For example, you bought a stock for $2,000 and paid a $12 commission. Your cost basis is $2,012.

Principal, by the way, equals cost basis. A bond portfolio whose market value is below (or above) cost basis pays the same amount of interest as it does when the market value hasn't changed.

An investor had a cost basis of $15,100 in Pepsico stock (she purchased $15,000 worth of Pepsico stock, and paid $100 total commissions on the buy and sell orders). She received $300 cash dividends during the time she held the stock.

The buy, or opening commission, is added to the cost basis and the sell, or closing commission, is deducted from the proceeds before calculating realized gain or loss, therefore commissions reduce taxable gains and increase losses.

A method of adjusting a taxpayer's cost basis of a bond bought at an original issue discount. The annual accretion is treated as interest for tax purposes. See also Original Issue Discount, Constant Yield, and Straight-line. Advanced Refunding ...

Accretion A method of adjusting the tax cost basis of a bond bought at an original issue discount in equal amounts over the life of the bond. For tax purposes, the annual accretion is treated as interest. See: Original Issue Discount ...

Appreciation is defined as market value less cost basis. It could also mean the rise in value over time. Investing terms and definitions starting with Numbers A B C D E F G H I J K L M N O P Q R S T U V W Q Y Z ...

2: In a bond bought at a premium, it is a method of reducing a taxpayer's cost basis (vs. Accretion). 3: Amortization also applies to debt reduction through periodic payments of principal and interest sufficient to pay off a loan by maturity.

FDI stock represents the direct investment position on a historical-cost basis, that is, the amount of investment already in the host country as opposed to the flow of capital into the host country in a given year.

Capital Gain Occurs when an investor sells an investment at a price higher than his cost basis in the investment. Capitalization The sum of a corporation's long-term debt, stock and retained earnings. Also called invested capital.

Commission expenses are included in your calculation of the total gain or loss from your trading activity. Include commissions in your total cost basis of any stock or option you purchased.

Therefore, you will have the ability to identify tax lots for sale. What does this mean? Well, it will enable you to sell your ETFs, which have the highest cost basis, minimizing your capital gain for the year.

This way, more shares will be purchased when prices are low and fewer shares will be bought when prices are high. So over time, the average cost basis will be lower than if all shares are bought at the same time.

At face value, it looks like you took a loss on an investment (which would be deductible from your gross income when you do your taxes), yet you still own that investment, you just now have a lower cost basis.

cost basis Purchase price, including commissions and other expenses, used to determine capital gains and capital losses for tax purposes. cost of capital The opportunity cost of an investment; that is, the rate of return that a firm...

See also: Basis, Stock, Price, Investment, Capital