20Aug
2014
2014
What is Basis?
Webb & Coyle Attorneys, PLLC / 0 Comments /Basis is how much you invested in a property for tax purposes. Adjusted basis is your original basis adjusted upwards or downwards based upon events, such as capital investments and depreciation respectively. Substituted or carryover basis occurs when someone makes a gift to someone during their lifetime. Inherited assets take on a new basis in the hands of the estate beneficiary (“stepped-up” if higher than the decedent’s basis, or “stepped down” if lower).
