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 ...

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.

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 ...

which is their acquisition cost and the cost “basis.” If the shares are sold for the FMV of $100,000, they would owe capital gain tax on the $90,000 difference between the sale price and their ...