Name of the blog

The word “basis” has at least two meanings.

In a narrower sense, it describes an amount invested in the acquisition of property, which anchors the calculation of realized gain or loss when that property is sold[1]See generally IRC § 1012 for cost basis in the US, gain or loss determined under § 1001(a). In Canada, “adjusted cost base” defined in ITA s. 54, referenced for gain/loss in s. 40(1)..

More broadly and colloquially, “basis” can refer to the reasoning that underpins an idea or a position, and lends it persuasive power by appeal to logic, evidence, precedent, or authority[2]The tax code evokes this meaning as well in IRC § 6662(d)(2)(B), requiring “reasonable basis” for a disclosed position to avoid the substantial understatement penalty..

In this blog I explore taxation with an emphasis on the basis of things. I aspire to establish in each post a sufficient framework of support for a reader who takes nothing on faith to reach the same conclusions as I do.

Its target audience is people who, like me, are unsatisfied with bald assertions and executive summaries, and want to reason more deeply about how things come to be.

References
1 See generally IRC § 1012 for cost basis in the US, gain or loss determined under § 1001(a). In Canada, “adjusted cost base” defined in ITA s. 54, referenced for gain/loss in s. 40(1).
2 The tax code evokes this meaning as well in IRC § 6662(d)(2)(B), requiring “reasonable basis” for a disclosed position to avoid the substantial understatement penalty.

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