Basis means any foundation/underlying support for any discussion, argument, justification, concept, idea, or method/procedure. It also means any regulations, systems, principles and guiding mechanisms for carrying out any activity.
Basis has several definitions including the following:
1. The foundation/underlying support for any idea, argument, discussion, etc.
2. A system or guideline for doing something.
3. The principal aspect of anything.
4. A fixed system/pattern for doing something.
Basis usually means the amount of investment of capital in real estate or property for purposes of taxation. This basis may be used for calculating things like amortization, depreciation, gains/losses from the exchange, sale, or disposition of property, and also casualty losses at the same time. Industry participants usually calculate the adjusted basis of properties. This is calculated by taking the original property investment into account, followed by the addition of the improvement cost and then deduction of the depreciation from the same, in tandem with theft/casualty losses, if any.
