Home » Investment Terms Dictionary » Cost Terms Dictionary » Cost Basis

Definition Of Cost Basis:

The purchase price of a security or physical asset that has been adjusted to subtract depreciation expense and capital gains tax payments.
The cost basis is used to calculate how much capital gains tax is owed when the investment or asset is sold.

Other Definition Of Investment Terms:

Cost-benefit Analysis
Cost Center
Cost Depletion
Cost, Insurance, And Freight
Cost Of Capital
Cost Of Carry

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