Basis (Tax) represents the starting point from which gains, losses, and depreciation deductions are computed. It is generally the original cost or purchase price of an asset.
Book cost refers to the acquisition cost of property as recorded on accounting statements. It typically includes the purchase price, installation costs, and indirect costs such as interest during construction.
The original cost represents the total purchase price initially incurred for acquiring an asset, including any associated acquisition expenses. This figure is essential for various financial calculations and reporting, forming the baseline for depreciation, amortization, or gain and loss assessments.
The term 'Purchase Price' refers to the dollar amount agreed upon by the buyer and the seller for the sale of a property. This figure is specifically outlined in the sales contract and does not take into account any adjustments for financing, concessions, or seller-paid closing costs.
