BASIS a tax blog by Steve Kobes

Name of the blog

Jan 31, 2020

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]

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]

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.

  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. ↩︎