Business / Taxes / 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. If you inherit assets, such as stocks or real estate, your cost basis is the asset's value on the date the person who left it to you died (or the date on which his or her estate was valued). This new valuation is known as a step-up in basis. For example, if you buy a stock at $20 a share and sell it for $50 a share, your cost basis is $20. If you sell, you owe capital gains tax on the $30-a-share profit. If you inherit stock that was bought at $20 a share but valued at $50 a share when that person died, your cost basis would be $50 a share, and you'd owe no tax if you sold it at that price.
Basis Noun Synonyms: foundation, base, bottom, heart, footing, principle, underpinning, infrastructure
Cost Noun Synonyms: sell for, get, fetch, bring in, set (someone) back
Cost Verb Synonyms: price, outlay, payment, charge, expense, expenditure, rate, tariff
Business / Agriculture / Basis: The difference between the current spot price (or cash price) of a commodity and the price of the nearest futures contract for the same or a related commodity. Basis is usually computed in relation to MORE
Business / Finance / Adjusted Basis: Price from which to calculate and derive capital gains or losses upon sale of an asset. Account actions such as any stock splits that have occurred since the initial purchase must be accounted for. MORE