Cost basis is the purchase cost of a particular security, including commission charges. Importantly, a cost basis can be established over a series of purchases of the same security, not just one trade ...

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 ...

Chad Langager is a co-founder of Second Summit Ventures. He started as an intern at Investopedia.com, eventually leaving for the startup scene. Katrina Ávila Munichiello is an experienced editor, ...

Dr. JeFreda R. Brown is a financial consultant, Certified Financial Education Instructor, and researcher who has assisted thousands of clients over a more than two-decade career. She is the CEO of ...

People invest with the hope of earning a return over time. But what happens when you choose to sell? Cost basis is key to understanding your tax obligations and the true profit of your investments.

Inherited stocks get a basis reset to market value at the owner's death, reducing capital gains tax on future sales. Heirs cannot use losses prior to the original owner's death to offset other ...

Cost basis affects capital gains taxes on investments. Cost basis varies by investment type and whether you purchased the asset or received it as a gift or inheritance. Optimizing cost basis can ...

The cost basis of a stock is the value of that stock or asset at a certain time, usually the time of purchase. It's normally calculated for tax purposes, so it's important to understand the factors ...

A: Let's say that you buy 100 shares of MacDonald Farms Inc. (ticker: EIEIO) for $50 each, paying a $10 commission. Your cost basis is the purchase price ($5,000) plus the commission, or $5,010. The ...

To figure the capital gains taxes you would have to pay on a stock sale, you need the purchase date of the shares you bought, and the price, adjusted for splits, including any reinvested dividends and ...