But what happens when you choose to sell? Cost basis is key to understanding your tax obligations and the true profit of your investments. Here’s everything you need to know about cost basis ...

That's because investors can end up paying more of their gains in taxes than they have to if they aren't smart about choosing which of their shares to sell based on a factor known as cost basis.

Yet the tax law actually gives heirs a huge tax break -- the ability to reset their cost basis -- when they inherit shares of stock or other investments that have increased in value. This tax law ...

What is included in the cost basis of an asset? According to tax law, cost basis is the tax-adjusted value of an asset, which is usually the purchase price, plus dividends, capital gains, and returns ...

As I got to reviewing her investment statements, I immediately noticed something was wrong: The cost basis of the stocks in the joint account were never stepped up to her husband's date of death.

Inherited stock is not valued at its original cost basis, which refers to its initial value, at the time of its purchase. When a beneficiary inherits a stock, its cost basis is stepped up to the ...

I know I'm a nag. I nag because it's so important to plan now for your family for when you die. It's not that we plan to fail ...

In addition to enhancing a home, capital improvements can increase the cost basis of a property, which in turn reduces the tax burden when it is sold. In some states, capital improvements can ...