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Basis (or cost basis), as used in United States tax law, is the original cost of property, adjusted for factors such as depreciation. When a property is sold, the taxpayer pays/(saves) taxes on a capital gain /(loss) that equals the amount realized on the sale minus the sold property's basis.
There are different reasons for forming a non-stock, for profit corporation. A corporation created solely to act as nominal owner of some property might not need to have shares of stock because all of the directors or members would have been co-owners. For example, owning a safe deposit box in a corporate name: if the corporation is non-stock, the directors of the corporation are not its ...
Following is a glossary of stock market terms. All or none or AON: in investment banking or securities transactions, "an order to buy or sell a stock that must be executed in its entirely, or not executed at all". [1] Ask price or Ask: the lowest price a seller of a stock is willing to accept for a share of that given stock. [2]
"Gain", in the very simple case, is the amount a taxpayer receives when a taxpayer disposes of an asset, minus the taxpayer's basis in the asset. Thus, if a taxpayer sold the house above for $100,000, the taxpayer's gain (what the taxpayer might be taxed on) would be $65,000 (sales price of $100,000 minus the taxpayer's basis of $35,000), if we ...
Sometimes an inheritance includes more than a house or an heirloom vase. Investors can choose to pass down to their heirs financial securities like stocks. Determining the value of such a bequest ...
Tax basis may be relevant in other tax computations. [1] Tax basis of a member's interest in a partnership and other flow-through entity is generally increased by the members share of income and reduced by the share of loss. The tax basis of property acquired by gift is generally the basis of the person making the gift.
These stocks, or collateral, guarantee that the buyer can repay the loan; otherwise, the stockbroker has the right to sell the stock (collateral) to repay the borrowed money. He can sell if the share price drops below the margin requirement, at least 50% of the value of the stocks in the account. Buying on margin works the same way as borrowing ...
After a sale is identified as a wash sale and if the replacement stock is bought within 30 days before or after the sale then the wash sale loss is added to the basis of the replacement stock. The basis adjustment preserves the benefit of the disallowed loss; the holder receives that benefit on a future sale of the replacement stock.