BASIS Definition

Bookmark and Share

BASIS, generally, is that figure or value that is the starting point in computing gain or loss, depreciation, depletion, and amortization of a company. Specifically, it is the financial interest that the Internal Revenue Service attributes to an owner of an investment property for the purpose of determining annual depreciation and gain or loss on the sale of the asset. If a property was acquired by purchase, the owners basis is the cost of the property plus the value of any capital expenditures for improvements to the property, minus any depreciation allowable or actually taken. This new basis is called the ADJUSTED BASIS.

Learn new Accounting Terms

MARKET MULTIPLE see PRICE EARNINGS MULTIPLE.

CARD is Certificate for Amortizing Revolving Debts; an asset-backed security backed by credit card receivables.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.