What is a Cost Basis?

January 27, 2023

What is a cost basis and why is it important to know about right now?

What is a cost basis?


In her latest reel, Marcie Whatley explains why it is important to look into during tax season.


Cost Basis

 A home owner’s cost basis generally consists of the purchase price of the property, plus the cost of capital improvements, minus any tax credits they have received.

If you have sold a house in 2022, you will be responsible for the capital gains of that property. Your real estate agent is someone who can help you determine your cost basis.

Be sure and reach out to your real estate agent to determine the value of the property at the time you acquired it and take the difference at the time you sold the property will be the amount you are responsible for; the capital gains. A real estate agent can help you determine that information. For more information check out the links here, here and here.


*This is not legal advice.