Basis

A tax term which refers to the value of property for the purposes of determining whether or not a profit or loss has been realized upon sale or transfer. For the purchase and subsequent sale of a home, the basis generally refers to the original sale price plus any capital improvements and costs of closing. Stepped Up Basis refers to the value at the time of the death of an owner or co-owner. Rather than using the original purchase price, the deceased owner’s basis is calculated as the value as of date of death.