kostenbasis

Kostenbasis, or cost basis, is the value used to determine gains or losses when an asset is disposed of, and, for assets used in business or investment, to calculate depreciation. In general it represents the original amount paid to acquire the asset plus certain costs incurred to obtain or ready it for use.

What counts toward the Kostenbasis depends on the asset type. For real estate, the basis typically includes the purchase price plus ancillary costs such as notary fees, real estate transfer taxes, and other acquisition-related costs; costs of improvements that extend the asset’s useful life can also be added. Ongoing maintenance is usually not included. For financial assets like stocks or bonds, the basis generally includes the purchase price plus acquisition costs such as broker fees. For business equipment, the basis includes the purchase price plus delivery or installation costs. In some cases, compositions change if the asset is inherited or received as a gift, or if there are corporate actions that affect cost.

Adjustments can apply over the asset’s life. The basis may be increased by capital improvements or other costs, and decreased by depreciation or amortization. When the asset is sold, the difference between the sale proceeds and the Kostenbasis determines the taxable gain or deductible loss.

Examples:

- Real estate: purchase price 300,000; notary and related fees 20,000; basis = 320,000. If sold for 380,000, gain = 60,000.

- Securities: purchase price 10,000; broker fees 200; basis = 10,200. If sold for 12,000, gain = 1,800.

Different tax systems may use different methods to calculate basis, such as specific identification or average cost methods.