carryover basis

Definition of "carryover basis"
  1. The tax value assigned to a gift, identical to the original owner's tax value
How to use "carryover basis" in a sentence
  1. Inheritance may often involve the concept of carryover basis.
  2. Knowing the carryover basis is essential to calculate potential capital gains tax.
  3. Because of the carryover basis rule, she may have to pay higher taxes on the gifted shares.

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