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ba·sis /'bā-səs/ n pl ba·ses /-ˌsēz/1: something (as a principle or reason) on which something else is establishedthe court could not imagine any conceivable basis for the statute see also rational basis2: a basic principle or method; esp: the principle or method by which taxable income is calculated◇ The Internal Revenue Code has set some limits on which method a taxpayer may use for figuring taxable income. For example, a corporation with gross receipts under $5,000,000 may be a cash-basis taxpayer.ac·cru·al basis: a method of accounting in which income and expenses are recorded in the period when they are earned or incurred regardless of when the payment is received or made – called also accrual method;cash basis: a method of accounting in which income and expenses are recorded in the period when payment is received or made – called also cash method;3: the value (as cost or fair market value) of an asset used in calculating capital gains or losses for income tax purposesadjusted basis: the basis of an asset increased or decreased to reflect changes in value (as through improvement or depreciation)car·ry·over basis /'kar-ē-ˌō-vər-/: the basis of a donated or transferred asset that is equal to the basis of the asset when it was in the hands of the donor or transferor◇ Carryover basis is generally applied to gifts, transfers in trust, and property acquired from a decedent.cost basis: the basis of an asset equal to the amount paid for the asset plus other acquisition costs (as a brokerage fee)stepped–up basis /'stept-'əp-/: a basis (as a carryover or cost basis) that is increased (as to fair market value) by other than an improvement or depreciation adjustmentsub·sti·tut·ed basis: the basis of property received in exchange for property of a like kind that is equal to the basis of the property given with adjustments for additional consideration received or gains and losses realized
Merriam-Webster’s Dictionary of Law. Merriam-Webster. 1996.
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I
noun
assumption, authority, background, base, cause, essence, foundation, fulcrum, fundamentals, fundus, ground, groundwork, hypothesis, justification, motive, origin, premise, principle, proposition, purpose, raison d'être, rationale, reason, root, source, support, underlying principle, warrant
associated concepts: basis of cost, basis of keeping accounts, basis of the bargain, cash basis, contingency basis, cost-plus basis
II
index
assumption (supposition), base (foundation), cause (reason), center (essence), consequence (significance), content (meaning), criterion, derivation, determinant, documentation, gist (ground for a suit), gist (substance), ground, main point, pattern, precedent, preparation, purpose, rationale, source, stare decisis, substance (essential nature)
Burton's Legal Thesaurus. William C. Burton. 2006
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n.A taxpayer’s cost in acquiring an asset.
The Essential Law Dictionary. — Sphinx Publishing, An imprint of Sourcebooks, Inc. Amy Hackney Blackwell. 2008.
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For income and capital gains tax purposes, the value that is used to determine profit or loss when property is sold. Often the basis is what you paid for the property, adjusted to reflect improvements made or damage incurred while you own the property. (See also: adjusted basis, carryover basis, stepped-up basis)Category: Personal Finance & Retirement → TaxesCategory: Personal Finance & Retirement → Money & Taxes for RetireesCategory: Real Estate & Rental Property → HomeownersCategory: Wills, Trusts & Estates → Estates, Executors & Probate Court
Nolo’s Plain-English Law Dictionary. Gerald N. Hill, Kathleen Thompson Hill. 2009.
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USAbasis, Also known as tax basis.The amount of a taxpayer's investment in property for tax purposes.The basis of purchased property is usually its cost plus certain expenses (referred to as a cost basis). If property is acquired by gift, inheritance, in a tax-free reorganization or in some way other than purchasing it, the property will have a basis other than its cost (for example, see carryover basis).Basis is often increased or decreased for various tax-related items. The result of these adjustments to the basis is the adjusted basis. A taxpayer needs to know its basis (or adjusted basis if applicable) to figure any gain or loss on the sale or other disposition of the property or any allowable depreciation, depletion, or amortization deductions.See also
Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010.
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n. The amount or value assigned to a taxpayer's cost of acquiring, or investment in, an asset. Primarily used when determining the taxpayer's gain or loss when the property is sold, bartered, or exchanged or the asset's depreciation.@ adjusted basisThe value of a taxpayer's basis in an asset, after making additions or subtractions to his or her original basis, to reflect certain events, such as capital improvements and depreciation, that affect the value of the property subsequent to the taxpayer's acquisition of or investment in the asset.The value of a taxpayer's original investment in property, adjusted by the value of subsequent capital improvements and depreciation deductions.See also basis.@ carryover basisThe basis of an asset transferred from one owner to another by gift or in trust at the time of the transfer.@ recovery of basis=>> recovery.@ stepped-down basisThe taxpayer's basis in an asset after the basis has been decreased to a certain value (usually its fair market value) upon a certain date or event. For example, the basis of inherited property is its fair market value as of the date of the decedent's death or an alternate valuation date and the decedent's stepped-down (or stepped-up) basis in the asset is the new owner's original basis.@ stepped-up basisThe taxpayer's basis in an asset after the basis has been increased to a certain value (usually its fair market value) upon a certain date or event.@ substituted basisThe basis of one asset that substitutes for that of another asset when the first asset has been exchanged or otherwise transferred in return for the second asset. The taxpayer does not incur any gain or loss, but substitutes the basis of the asset she transferred to the property she acquired.@
Webster's New World Law Dictionary. Susan Ellis Wild. 2000.
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The minimum, fundamental constituents, foundation, or support of a thing or a system without which the thing or system would cease to exist. In accounting, the value assigned to an asset that is sold or transferred so that it can be determined whether a gain or loss has resulted from the transaction. The amount that property is estimated to be worth at the time it is purchased, acquired, and received for tax purposes.
Dictionary from West's Encyclopedia of American Law. 2005.
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The minimum, fundamental constituents, foundation, or support of a thing or a system without which the thing or system would cease to exist. In accounting, the value assigned to an asset that is sold or transferred so that it can be determined whether a gain or loss has resulted from the transaction. The amount that property is estimated to be worth at the time it is purchased, acquired, and received for tax purposes.
Short Dictionary of (mostly American) Legal Terms and Abbreviations.
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n.the original cost of an asset to be used to determine the amount of capital gain tax upon its sale. An "adjusted basis" includes improvements, expenses, and damages between the time the original basis (price) is established and transfer (sale) of the asset. "Stepped up basis" means that the original basis of an asset (especially real property) will be stepped up to current value at the time of the death of the owner, and thus keep down capital gain taxes if the beneficiary of the dead person sells the asset. Example: Daniel Oldboy buys a house for $30,000, and when he dies the place is worth $250,000. When his son and heir receives the property, the son can sell it for $250,000 with no capital gains tax, but if Dad had sold it before his death there would have been capital gains on $220,000. It can be more complicated than this simple example with assets jointly held with a spouse, exchanges of property, and other variations which require professional assistance.See also: adjusted basis
Law dictionary. EdwART. 2013.
