Basis

Business / Real Estate / Basis: The dollar amount that the Internal Revenue Service attributes to an asset for purposes of determining annual depreciation or cost recovery, and gain or loss in the sale of the asset. The determination of basis is of fundamental importance in tax aspects of real estate investment. All property has a basis. If property was acquired by purchase, the owners basis is the cost of the property plus the value of any capital expenditures for improvements to the property, reduced by any cost recovery depreciation actually taken or allowable. The basis is also reduced by any untaxed gain carried over to the new property in cases where the new property is a replacement of a former residence or is acquired through a like-kind exchange or through an involuntary conversion. This new basis is called the propertys adjusted basis.

Other Words for Basis

Basis Noun Synonyms: foundation, base, bottom, heart, footing, principle, underpinning, infrastructure
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Accrual Basis

Business / Accounting / Accrual Basis: Gross income is recognized when earned. MORE

Fare Basis

Life Style / Travel / Fare Basis: Conditions, including service class and ticketing provisions, that determine a fare. Fare basis is designated by identifying letters and/or numbers on a ticket. MORE

Cash Basis Accounting

Business / Taxes / Cash Basis Accounting: Cash basis accounting is one of two ways of recording revenues and expenses. Using this method, a company records income on its books when it receives a payment and expenses when it makes a payment. I MORE

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