But what happens when you choose to sell? Cost basis is key to understanding your tax obligations and the true profit of your investments. Here’s everything you need to know about cost basis ...

What is included in the cost basis of an asset? According to tax law, cost basis is the tax-adjusted value of an asset, which is usually the purchase price, plus dividends, capital gains, and returns ...

Yet the tax law actually gives heirs a huge tax break -- the ability to reset their cost basis -- when they inherit shares of stock or other investments that have increased in value. This tax law ...

That's because investors can end up paying more of their gains in taxes than they have to if they aren't smart about choosing which of their shares to sell based on a factor known as cost basis.

As I got to reviewing her investment statements, I immediately noticed something was wrong: The cost basis of the stocks in the joint account were never stepped up to her husband's date of death.