what is the valuation basis
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- Accounting valuation is the process of valuing a company's assets for financial-reporting purposes. Accounting valuation is the process of valuing a company's assets for financial-reporting purposes. Topics
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What is a basis point (BPS)? A basis point is a unit of measure used in finance to describe the percentage change in the value or rate of a financial instrument. One basis point is equivalent to 0.01% (1/100th of a percent) or 0.0001 in decimal form. Likewise, a fractional basis point like 1.5 basis point is equivalent to 0.015% or 0.00015 in decimal form. In most cases, basis point refers to changes in interest rates and bond yields.
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basis of accounting basis of accounting. Method used to determine when revenues and expenses (with associated assets and liabilities) are recognized in the accounts of a firm, and reported in its financial statements.
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Basis of Investment Property  (p41) If the FMV of the property at the time of the gift was less than the donor's adjusted basis, your basis for gain on its sale or other disposition is the same as the donor's adjusted basis, plus or minus any required adjustments to basis during the period you held the property. A different rule applies if you sell gifted property at a loss.
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CAPITAL GAIN/LOSS DETERMINING THE BASIS Capital gain/loss is calculated on the cost basis, which is the amount of cash and debt obligation used to pay for a property, along with the fair market value of other property or services the purchaser provided in the transaction.
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DEFINITION of 'Carryover Basis' DEFINITION of 'Carryover Basis' A method for determining the tax basis of an asset when it is transferred from one individual to another. Carryover basis is often used when property is given as a gift to someone else and is the method for determining the basis for future tax payments. A method for determining the tax basis of an asset when it is transferred from one individual to another.
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What is 'Cost Basis' DEFINITION of 'Cost Basis'. 1. The original value of an asset for tax purposes (usually the purchase price), adjusted for stock splits, dividends and return of capital distributions. This value is used to determine the capital gain, which is equal to the difference between the asset's cost basis and the current market value. Also known as tax basis. 2.
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Cost Basis The cost basis of inherited shares is generally the value of the shares on the day the decedent died; however, consult the executor of, or tax advisor to, the estate to determine if cost basis should be determined by reference to a value on an alternate date.
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DEFINITION of 'Accounting Valuation' DEFINITION of 'Accounting Valuation' Accounting valuation is the process of valuing a company's assets and liabilities for financial reporting purposes. Several accounting-valuation methods are used while preparing financial statements in order to value assets.
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What is 'Tax Base' What is a 'Tax Base'. Tax base is defined as the income or asset balance used to calculate a tax liability, and the tax liability formula is tax base multiplied by tax rate. The rate of tax imposed varies depending on the type of tax and the tax base total. Income tax, gift tax and estate tax are each calculated using a different tax rate schedule.
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Basis Adjusted basis, the net cost of an asset after adjusting for various tax-related items. Basis of futures, the value differential between a future and the spot price. Basis (options), the value differential between a call option and a put option. Basis point, 0.01%, often used in the context of interest rates. Basis trading, a trading strategy consisting of the purchase of a security and the sale of a similar security. Cost basis, in income tax law, the original cost of property adjusted for factors such as depreciation. Tax basis, cost of an asset.
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Valuation <a href=http://www.investorglossary.com>Investor Glossary</a>. Valuation is the attempt to determine whether a stock is fairly priced. According to financial theory, a stock should be valued at the future cash flows it will generate, discounted by an appropriate rate. But both future cash flows and an appropriate discount rate are highly uncertain, and thus investors seek additional valuation methods.
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Basis of accounting (January 2013) A basis of accounting can be defined as the time various financial transactions are recorded. The cash basis (EU VAT vocabulary Cash accounting) and the accrual basis are the two primary methods of tracking income and expenses in accounting.
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DEFINITION of 'Adjusted Basis' DEFINITION of 'Adjusted Basis'. The proportionate value of an asset or security that reflects any deductions taken on, or capital improvements to the asset or security. Next Up. Adjusted basis is used to compute the gain or loss on the sale of an asset or a security.
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Tax Terms Glossary (This is sometimes referred to as cost basis, tax basis or simply, basis.) The basis generally starts out as what you pay for the property, although special rules apply to assets you inherit or receive as a gift. The basis can be adjusted while you own property.
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What is 'Cost Basis' For tax calculation purposes, the adjusted cost basis when the stock is sold will be recorded at $1,300 instead of the original purchase price of $1,000. Thus, if the sale price is $1,500, the taxable gain would only be $200 ($1,500 - $1,300) instead of $500 ($1,500 - $1,000).
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tax basis Tax basis. In the context of finance, the original cost of an asset less depreciation that is used to determine gains or losses for tax purposes. In the context of investments, the price of a stock or bond plus the broker's commission. Tax Basis. 1. The cost of an asset less depreciation.
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adjusted basis The difference between the adjusted basis and the ultimate sale price of a property will be the taxable profit on the sale.The adjusted basis is an extremely important tax concept,and one which it is important to master in order to comfortably evaluate properties.
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basis Definitions (2) 1. Purchase price, including commissions and other expenses, used to determine capital gains and capital losses for tax purposes. This can be determined by several methods. For a purchased investment, the basis is the amount paid. If inherited, the basis is the value of the stock on the date of the original owner's death.
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A red-rock wonderland Visit Arches to discover a landscape of contrasting colors, land forms and textures unlike any other in the world. The park has over 2,000 natural stone arches, in addition to hundreds of soaring pinnacles, massive fins and giant balanced rocks. This red-rock wonderland will amaze you with its formations, refresh you with its trails, and inspire you with its sunsets.
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How to Eat a Low-Fiber Diet A diet low in fiber and residue (residue is any indigestible portion of food including fiber, skins, seeds, and hulls), may ease symptoms in Crohn's. Here are 9 tips for eating a low-fiber diet. It's a short-term diet. A low-fiber diet is best for a short period of time.
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What Is Adjusted Cost Basis? The idea of adjusted cost basis is to account for the fact that the cost of an asset to its owner goes beyond simply its purchase price. The adjustments help produce a fair value of what an owner has spent on the asset.
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Basis of Investment Property  (p41) Adjusted Basis. Before figuring gain or loss on a sale, exchange, or other disposition of property or figuring allowable depreciation, depletion, or amortization, you must usually make certain adjustments to the basis of the property. The result of these adjustments to the basis is the adjusted basis.
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Understanding Tax Basis Understanding Tax Basis. The importance of basis is best understood when it comes time to settle up with Uncle Sam each year. The basis one has in capital assets affects how much tax he or she will owe. Basis is the term the tax law uses to refer to the amount of investment a taxpayer has in business assets. The expense or investment in some business purchases such as feed, seed, and fertilizer can be deducted completely the year of purchase.
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- Basis for Determining Gain or Loss and for Depreciation and Depletion ONE MAIN CAUSE OF DIVERGENCE BETWEEN TAXABLE INCOME and book profit lies in the different bases, or book values, at which property is carried for the two purposes. Basis is a tech-nical tax concept that means essentially the amount at which
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What is 'Cost Basis' What is 'Cost Basis'. Cost basis is the original value of an asset for tax purposes, usually the purchase price, adjusted for stock splits, dividends and return of capital distributions. This value is used to determine the capital gain, which is equal to the difference between the asset's cost basis and the current market value.