Tag: Outside Basis

  • Basis in Business

    Basis in Business

    Basis is a business term used to identify the value of an individual or entity’s investment in an entrepreneurial endeavor. It is customarily linked to taxation as this term is used by the Internal Revenue Code to determine gain or loss. To further compound its meaning  ‘basis’ is sometimes substituted for the term ‘equity’.

  • At-Risk Rules – An Elementary Understanding

    At-Risk Rules – An Elementary Understanding

    Code Section 465 of the Internal Revenue Code defines ‘At-Risk’ as the financial value the taxpayer has in jeopardy related to the business activity the taxpayer is invested in as some form of an owner. Effectively, the taxpayer may only take losses on his tax return contingent on the loss being directly tied to invested dollars…