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 ...

Learn about our editorial policies The cost basis of an asset is the amount of the initial investment, or the original purchase price. It's an important number in tax planning for individual ...

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 ...