The "basis"of an asset is what a person has paid for an asset together with money invested in an asset after purchase. This determines gain/loss for income tax purposes.
Example: You purchased your house for $100,000, but have since had to put on a new roof for $3,000, you added on a garage for $10,000, and updated the windows for $4,000. Your new basis in your house is now $117,000 ($100,000 + $3,000 + $10,000 + $4,000).
About Swier Law Firm's Estate Planning & Probate Practice Group
Swier Law Firm has a nationally recognized practice in estate planning and probate law and handles the following types of cases:
Take a look at our valuable estate planning books and articles. Our materials are full of tips and advice. All materials are written by the law firm's nationally recognized estate planning attorneys and provide detailed South Dakota-specific information designed to help anyone with estate planning issues. You can request your free copy by clicking on the book cover below.
.png)
(1).png)
