Asset Basis & Gain/Loss Calculator
Understand Your Asset's Tax Value
An asset's "basis" is key to calculating gains, losses, and depreciation. Select how you acquired your asset below to explore the rules and calculate its basis.
Gifted Property Calculator
When you receive a gift, the tax rules for determining your basis can be tricky, especially if the asset's value has changed. Enter the details below to see how the "dual-basis" rule applies to your situation.
Inherited Property & "Stepped-Up" Basis
Inheriting property comes with one of the most powerful tax benefits: the "stepped-up" basis. This means the asset's basis is reset to its fair market value on the date of death, often erasing decades of taxable gains.
Business Asset Expensing Options
For businesses, capitalizing an asset and depreciating it over time is the standard. However, several powerful tax incentives allow you to expense some or all of the cost in the first year, providing an immediate tax benefit.
Section 179 Deduction
Expense up to $1,220,000 of new or used equipment in 2024. This benefit phases out if total purchases exceed $3,050,000. It's a huge incentive for small to medium businesses to invest.
Bonus Depreciation
Take an immediate first-year deduction for a percentage of the asset's cost. Unlike Section 179, it's not limited by your business income. The rate for 2024 is 60%.
De Minimis Safe Harbor
For simplicity, immediately expense low-cost items. The limit is $5,000 per item with an audited financial statement, or $2,500 without one.
Bonus Depreciation Phase-Down
This benefit is time-sensitive. The percentage you can deduct in the first year is decreasing annually.
