We're Closing. Thank You.

Doug Cook is retiring and Steve Cook has moved to an in-house counsel position. As such, we are no longer accepting new clients. Thank you.

Cost Basis

Cost basis is a term used by the Internal Revenue Code (IRC) used to calculate the amount of gain or loss upon the sale or distribution of an asset. According to the IRS, cost basis is the amount paid in cash, debt obligations, other property, or services. Cost basis also includes:

Sales tax, Freight, Installation and testing, Excise taxes, Legal and accounting fees (when they must be capitalized), Revenue stamps, Recording fees, and Real estate taxes (if assumed for the seller).

IRS Publication 551

This brief overview of some important considerations associated with cost basis is by no means comprehensive. Always seek the advice of a competent professional when making important financial and legal decisions.