Adjusted Cost Base
Meaning ⎊ The total tax-relevant cost of an asset including purchase price and associated fees, used to calculate capital gains.
Average Cost Basis Method
Meaning ⎊ A method of calculating the cost basis by averaging the purchase prices of all units held in a portfolio.
Transaction Fee Deduction
Meaning ⎊ The inclusion of trade-related costs in the cost basis to reduce the final taxable gain on an asset sale.
First-In-First-Out Method
Meaning ⎊ Accounting rule assuming the first assets bought are the first ones sold to determine cost basis and taxable gain.
Gross Profit
Meaning ⎊ The surplus remaining from trading revenue after deducting the direct costs of acquiring or facilitating the assets sold.
LIFO Accounting Method
Meaning ⎊ Inventory valuation assuming the most recently acquired assets are sold first, often used to defer tax liabilities.
FIFO Accounting Method
Meaning ⎊ Inventory valuation assuming the earliest acquired assets are sold first, often resulting in higher taxable gains.
Transaction Fee Deductibility
Meaning ⎊ The practice of subtracting trading and network fees from gross proceeds to accurately calculate net taxable capital gains.
Holding Period Calculation
Meaning ⎊ Measuring the time an asset is held to determine if a sale qualifies for long-term or short-term tax treatment.
First-In First-Out Method
Meaning ⎊ An accounting method assuming the oldest assets purchased are the first ones sold to calculate gains or losses.
Transaction Fee Capitalization
Meaning ⎊ Adding transaction and network fees to the asset cost basis to reduce the final taxable capital gain.
FIFO Vs LIFO Accounting
Meaning ⎊ Inventory cost flow methods determining which assets are sold first for tax and valuation purposes.
LIFO Accounting
Meaning ⎊ An accounting method assuming the most recently acquired assets are the first ones sold for cost basis determination.
Adjusted Cost Basis
Meaning ⎊ The original purchase price of an asset modified by fees, commissions, and other adjustments.
FIFO Method
Meaning ⎊ Accounting approach assuming the oldest assets in a portfolio are sold first to determine cost basis.
HIFO Method
Meaning ⎊ Accounting method assuming the most expensive assets are sold first to minimize reported taxable gains.
Tax Lot Tracking
Meaning ⎊ The practice of monitoring distinct groups of assets acquired at different times to manage cost basis and taxes.
