How Do You Calculate The Basis On An IRS Form 1040 Schedule D?
Internal Revenue Service Form 1040 Schedule D refers to capital gains and losses. A capital gain or loss is the amount of money you earn or lose when you sell an asset such as a stock or real estate. To calculate the amount of money you gained or lost, you must determine the difference between the sale price and the asset’s basis. The method for calculating the asset’s basis differs depending on how you acquired it and any costs associated with the acquisition of the asset. Determine the cost of the asset you sold. This is the amount of money you paid for the asset when you first bought it regardless of the asset’s fair market value at the time. If you received the asset as a gift, this amount is the money that person paid when he acquired the asset. For instance, if you (or the person who gave you the asset) paid $100,000 for a house, the starting amount would be $100,000. Add to the cost any commissions paid (such as commissions paid to a real estate agent or stock broker) and improv
