Legal Dictionary of Pakistan
Quick lookup for English, Urdu, and Latin legal terms used in Pakistani jurisprudence.
Adjusted basis
basis increased by capital improvements and decreased by depreciation deductions. "[i]t is well to consider the word 'adjusted' in the term 'adjusted basis.' often, after property is acquired, certain adjustments (increases or decreases to the dollar amount of the original basis) must be made. After these adjustments, the property then has an 'adjusted basis."' michael d. Rose & john c. Chommie, federal income taxation ยง 6.04, at 300 (3d ed. 1988).
Adjusted cost basis.
Basis resulting from the original cost of an item plus capital additions minus depreciation deductions.
Basis
1. A fundamental principle; an underlying condition. 2. Tax. The value assigned to a taxpayer's investment in property and used primarily for computing gain or loss from a transfer of the property. ( when the assigned value represents the cost of acquiring the property, it is also called cost basis. - also termed tax basis. Pl. Bases.
Basis point
One-hundredth of 1%; .ol%. 0 basis points are used in computing investment yields (esp. Of bonds) and in apportioning costs and calculating interest rates in real-estate transactions.
Carryover basis
the basis of property transferred by gift or in trust, equaling the transferor's basis. - also termed substituted basis.
Stepped-up basis
the basis of property transferred by inheritance. ( stepped-up basis equals the fair market value of property on the date of the decedent's death (or on the alternate valuation date).
Substituted basis
1. The basis of property transferred in a tax-free exchange or other specified transaction. 2. See carryover basis.
adjusted basis.
See BASIS.
adjusted cost basis.
See BASIS.
carryover basis
See BASIS.
cash-basis accounting method
An accounting method that considers only cash actually received as income and cash actually paid out as an expense.
cost basis
See BASIS (2),
income-basis method
A method of computing the rate of return on a security using the interest and price paid rather than the face value.
rational-basis test
Constitutional law. A principle whereby a court will uphold a law as valid under the Equal Protection Clause if it bears a reasonable relationship to the attainment of some legitimate governmental objective. - Also termed rational purpose test; rational-relationship test; minimal scrutiny; minimum scrutiny. Cf. STRICT SCRUTINY; INTERMEDIATE SCRUTINY.
stepped-up basis
See BASIS.
substituted basis
See BASIS.
tax basis
See BASIS (2),