17:04
as most dictators who have come into power do, he appealed to the masses just to turn face once in power
Warning
Info
Warning
Info
LSDefine
Simple English definitions for legal terms
basis
Read a random definition: split
A quick definition of basis:
Basis: Basis is a fancy word that means the cost or value of something, like a toy or a house. When you buy something, the basis is how much you paid for it, plus any extra costs like taxes or fees. If you sell it later, the basis helps figure out how much money you made or lost. Sometimes, the basis can change if you spend more money on fixing or improving the thing you bought. But sometimes, the basis stays the same as what you paid for it.
A more thorough explanation:
Under U.S. tax law, basis refers to the cost or value of an asset. It is used to determine equity or ownership for tax assessment, exchange, or sale purposes. Basis includes the purchase price, taxes, transportation costs, and fees. It is adjusted based on what happens to the property during the owner's period of ownership to determine the owner's adjusted basis.
For most assets, the basis is the cost of acquisition, which includes amounts paid by cash, debt obligations, and other property or services. For common assets like stocks and bonds, basis is generally the purchase price plus additional costs such as commissions and recording or transfer fees.
Expenses that increase basis include rehabilitation expenses, the cost of extending utility service lines to a property, impact fees, legal fees for defending and perfecting title, and zoning costs. For example, if you buy a property and spend money on rehabilitating it, the cost of rehabilitation will increase the basis of the property.
Expenses that decrease basis include deductions for clean-fuel vehicles and refueling property, amortization, depreciation, and depletion, postponed gain from the sale of a home, casualty and theft losses and insurance reimbursements, cancelled debt that is excluded from income, rebates from a manufacturer or seller, and easements. For example, if you claim a deduction for depreciation on a rental property, the basis of the property will decrease.
Overall, basis is an important concept in determining the tax consequences of buying, selling, or exchanging assets. It helps to determine the gain or loss on the sale of an asset and the amount of depreciation that can be claimed on certain assets.