Cost Basis
InvestingThe original value of an asset for tax purposes, used to calculate capital gains or losses when sold.
Example
Example: Consider an investor building a $100,000 portfolio. Cost Basis — the original value of an asset for tax purposes, used to calculate capital gains or — directly affects investment strategy and long-term returns. Getting this concept right can mean tens of thousands of dollars in difference over a 20-year period. Model your portfolio with our investment calculator.