Cost Basis

Cost basis is the amount used to determine gain or loss for tax purposes, adjusted under applicable tax rules.

Why this matters to income investors

Tax basis affects reported gains and losses when an income holding is sold.

How to use cost basis in your research

Use the payer’s final tax document and your purchase records to identify the amount, tax character, and basis effect. Tax treatment can depend on your circumstances, so do not infer it from the cash payment alone.

This material is general education and information, not individualized investment, tax, or legal advice.