cost basis investment & finance definition
The purchase price of a security or physical asset that has been adjusted to subtract depreciation expense and capital gains tax payments.
Definition
Cost basis
The original price of an asset, normally the purchase price or the appraised value of the asset at the time of acquisition.
RELATED TERMS ...
COST BASIS
The cost basis is the original price of an asset - usually the purchase price plus commissions. You use the cost basis to calculate capital gains and capital losses, depreciation, and return on investment.
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
Another method that is used is to sell specific lots and use the cost basis of each designated lot. You should consult your tax advisor for more information about this method.
Capital Gains Tax ...
Cost Basis: The original cost of an investment, used to determine capital gains and losses for tax purposes.
Coupon Rate: The interest rate percentage that an issuer of debt securities promises to pay over the life of the security.
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 cost of a given share or group of stock shares.
Coupon ...
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
The original price of an asset, used in determining capital gains. It usually refers to the purchase price of a stock, bond or other security.
Back to Top ...
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 original price of an asset, used to determine capital gains.
Cost-benefit ratio
The net present value of an investment divided by the investment's initial cost. Also called the profitability index.
Cost Basis
Relative Strength Index (RSI)
Browse All Education
Scottrade Trading Site: Research Basics ...
Cost Basis Per Share: $6.42
Current Dividend: .58 per share per quarter or $2.32 annually
Income from Cl holdings: $5039.04 annually or $419.92 per month.
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.
The cost basis is the cost of the original shares along with adjustments such as commission paid. If there is a profit made from a transaction, it is classified as a capital gain.
Your cost basis in this example is your cost of the stock plus the commission that you paid. It's your net investment in the stock. The difference between your cost basis and your proceeds determines the amount of your capital gain.
Total Investment = Cost Basis = $100 + $4.06 = $104.06.
Capital gain/loss = $103.02 - $104.06 = -$1.04 (a capital loss)
($4.06 dividends - $1.04 capital loss ) / $104.06 total investment = 2.9% ROI ...
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.
Your cost basis remains at a higher cost so you do not see the higher rates of return the new investors are getting partially from the bonds that the fund held when you bought in.
Cost Basis:The cost of purchasing a financial asset including commissions, dividends, stock split adjustments, future sales or purchases on the same position and any Option Trading Strategies used in conjunction with the same position.
Here are a few basic Asset Allocation Guidelines: (1) All Asset Allocation decisions are based on the Cost Basis of the securities involved. The current Market Value may be more or less and it just doesn't matter.
29 per share and had a total cost basis of $2,865.45. Today, thanks to reinvested dividends, I own 124.36474 shares, or nearly 20 shares more than I originally purchased. The stock has crashed (along with everything else) to $23.
In that case, he would have to determine his adjusted basis by starting with his cost basis ($4,456.10), and adding to that the amount of OID that has accrued (based on the original discount on the bond).
00 per widget, the vendor can use the average cost method in order to determine a cost basis for the resale price, ensuring that the profit margin is preserved. If the vendor purchased two widgets at $1.00 each and two widgets at $2.
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.
Capital Gains Cost Basis
Capital Gains Computation
Capital Gains Tax Rates
Cashless Option Exercise
Deductions for Investors
Estate and Gift Tax
Gifts of Stock
Non-Resident Aliens and US Holdings
Reporting Fund Distributions ...
When a stock is sold for a profit, the portion of the proceeds over and above the purchase value (or cost basis) is known as capital gains. Capital gains tax is broken down into two categories: short-term capital gains and long-term capital gains.
Notice that we use the current cost basis (stock minus premium) of the covered calls, not the original cost basis, as the basis for most of these calculations. (If you want an excel version of Figure 1, you can email us at vloptions@valueline.com.) ...
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 ...
... decisions are based on the Cost Basis of the securities involved. The current Market Value may be more or less and it just doesn't matter. ...
6. Investment Performance and The Working Capital Model
(Articles/Personal Finances) ...
The method of identifying cost basis can help you to get the most out of reduced tax rates. Using Tax Lots: A Way To Minimize Taxes
Find out how a company can put its profits directly into your hands. How Dividends Work For Investors ...
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.
1-
- Buy 500 x RVBD @ $29.80 (cost basis = $14,900)
- Sell 5 x July $30 calls @ $1.53 (initial profit = $765)
- Initial return = $765/$14,900 = 5.1% ...
When you do this, you need to forget your cost basis (the price you entered into the position). Look at the security as if you did not own it. Analyze the trend, supply and demand zones, and ask yourself, would you buy this security right now?
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.
In order minimize tax liability a given investor who is selling shares must identify what priced they were when bought in order to determine his or her cost basis.
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.
of your position (not all of it), and repurchase the shares at a lower price. Not recommended for anyone with a true long-term viewpoint, but if it consoles you to have a short-term loss, in order to build a long-term position at a lower cost basis, ...
already own at a lower price than originally paid, thereby giving you more shares for the same cost basis,
and ultimately, a lower average price per share. When we buy a penny stock, we always start slowly, with a
small chunk of the portfolio.
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, Investment, Market, Share
|
