What is basis? And How is it Calculated?

If you're trying and calculate a capital gain (or loss) you need to know the "basis" of what you sold. This video defines basis, particularly as it pertains to securities, and shows you how to calculate basis when your brokerage house doesn't report it to you. You'll also find out how to figure out the basis of capital assets you inherit or receive as gifts.

To see my original video on capital gains, click here:    • What is a Capital Gain? (and how are ...  

Additional resources and information:

IRS Publication 551: "Basis of Assets": https://www.irs.gov/pub/irs-pdf/p551.pdf

Websites useful for researching basis of securities.

www.bigcharts.com

www.yahoo.com/financial

The Tax Geek on Twitter: @taxgeekusa

The Tax Geek on Reddit: www.reddit.com/r/askataxgeek

Image Credits:

Wikimedia Commons
Pexels.com

The images of "Adam," "Janet," "James," and "Jeremy" were generated by thispersondoesnotexist.com and any resemblance between their likenesses and any person, living or dead, is incidental and not intended.

Intro Music: "Bluesy Vibes" - Doug Maxwell - YouTube Audio Library

Outro Music: "Modern Attempt" - Track Tribe via YouTube Audio Library

DISCLAIMER: This video is for educational and informational purposes only. It is not intended to render tax advice or investment advice for individual situations. If you have questions regarding your particular situation, please consult with a qualified tax or investment professional.

The information in this video is current as of date of publication, and is subject to changes.