cost basis

Definitions (3)

1. Purchase price, including commissions and other expenses, used to determine capital gains and capital losses for tax purposes.
2. The cost of an asset used to determine tax liabilities. This number is the purchase price, including capital gains and losses, accrued interest, and other fees. also called tax basis.
3. The difference between the cash price and the futures price of a given commodity.

Use cost basis in a sentence

To determine capital gains as well as capital losses we had to check out our cost basis, which was extremely important for us.

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In most cases, when retailers increase their prices to the consumer it is due to the cost basis rising in production, or at the wholesale level.

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When investing in MLPs investors must account for the portion of distributions received that are considered a return of capital and reduce their cost basis accordingly.

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