Basis points are often used in accounting and in the financial services field to simplify percentages written in decimal form. Basis points are sometimes used because they don't require the accountant ...

I am a CPA specializing in helping busy business owners decrease the amount of time and energy they need to manage their accounting system. It’s tax preparation season, and like most business owners, ...

Cost basis is the original purchase price of an asset. Tracking cost basis is key to tax-efficient investing. Many, or all, of the products featured on this page are from our advertising partners who ...

The tax code attempts to tax income each time it is received by a new taxpayer. Shareholders obtained their investments using money that was already subject to income tax, and that investment forms ...

Cost basis is the original price of an investment or asset used to calculate capital gains taxes. Usually, the cost basis is the price at which the asset in question was purchased. Cost basis is the ...

Inheriting an asset grants a step-up in basis, setting cost basis to FMV at death, reducing capital gains tax. Controversy surrounds step-up in basis, as it significantly lowers taxes on inherited ...

Cost basis is the original value of an investment. This helps you determine your gains or losses. It’s useful for determining whether your investments are profitable. This is important for taxes as ...

Basis risk refers to the potential mismatch between the value of an asset or liability and the financial instrument used to hedge or manage its risk. This divergence can result in unexpected gains or ...