For tax purposes, the cost basis of an asset does not include any portion of the purchase price paid through debt financing.

Name: For tax purposes, the cost basis of an asset does not include any portion of the purchase price paid through debt financing.
Brand: Quizplus
Rating: 4.9 (27 reviews)

Question

Quizplus · Accepted Answer

The cost basis of an asset does include the portion of the purchase price paid through debt financing. This is because the debt financing is part of the total cost of acquiring the asset.

For Tax Purposes, the Cost Basis of an Asset Does