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Basis (or cost basis ), as used in United States tax law, is the original cost of property, adjusted for factors such as depreciation. When a property is sold, the taxpayer pays/ (saves) taxes on a capital gain / (loss) that equals the amount realized on the sale minus the sold property's basis.
Cost basis is the original value of an investment, typically the price you bought it for. It’s used to calculate capital gains or losses when you sell the investment.
Definition. A Basis of Estimate (BOE) is an analyzed and carefully calculated number that can be used for proposals, bidding on government contracts, and executing a project with a fully calculated budget. [2]
The tax code of the United States holds that when a person (the beneficiary) receives an asset from a giver (the benefactor) after the benefactor dies, the asset receives a stepped-up basis, which is its market value at the time the benefactor dies ( Internal Revenue Code § 1014 (a)).
Cost-based pricing is a way to induce a seller to accept a contract the costs of which represent a large fraction of the seller's revenues, or for which costs are uncertain at contract signing, as for example for research and development.
A cost-plus contract, also termed a cost plus contract, is a contract such that a contractor is paid for all of its allowed expenses, plus additional payment to allow for a profit. [1] Cost-reimbursement contracts contrast with fixed-price contract, in which the contractor is paid a negotiated amount regardless of incurred expenses.
A basis of accounting is 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.
Section 1012 of the Internal Revenue Code defines “basis” as a taxpayer's cost in acquiring property, except as provided in Sections 1001–1092. Section 1016 then lists 27 adjustments to this basis. Generally, improvements to property increase basis while depreciation deductions decrease it.
CBA has two main applications: [3] To determine if an investment (or decision) is sound, ascertaining if – and by how much – its benefits outweigh its costs. To provide a basis for comparing investments (or decisions), comparing the total expected cost of each option with its total expected benefits.
Cost accounting is defined by the Institute of Management Accountants as "a systematic set of procedures for recording and reporting measurements of the cost of manufacturing goods and performing services in the aggregate and in detail.