important financial record – your asset basis
Radio Transcript, 60 seconds, for use during week
of Dec. 31.
This is an Invest Wisely minute brought to you by Iowa State
One of the important financial records investors need to keep
track of is basis. This is the acquisition cost assigned to
an asset for income tax purposes.
If you sell an asset and cannot prove your basis the IRS can
apply a basis of zero, which means they think you made a lot
more money than you did. It can be a costly mistake.
And if you give a security as a gift, the person you give it
to must use the same basis as yours. Basis recordkeeping
is key to successful investing.
Invest Wisely comes from Iowa State University Extension through
a grant from the Investor Protection Trust providing investor
education on the web at investorprotection.org.