Tax basis

{
  "id": "MLC-T-LAW-004837",
  "term": "Tax basis",
  "field": "Law",
  "definition": "The original cost or value of an asset, adjusted for factors like depreciation, improvements, or other capital events, used to determine gain or loss for tax purposes. It serves as the benchmark against which the selling price of an asset is compared to calculate taxable profit or deductible loss. For inherited property, the tax basis is typically stepped up to the fair market value at the date of the decedent's death.",
  "url": "https://mlchart.com/terminology/law/tax-basis/"
}