Video: Basis and Holding Period of Assets Overview

In this lesson, Nick Palazzolo, CPA, dives into the critical concept of basis — the cornerstone for understanding the taxation of asset disposition. He engagingly delves into why knowing the basis of an asset is a building block for grasping more complex tax-related topics down the line. Using straightforward language, Nick explores the idea that the tax owed on the sale of an asset hinges on the asset's selling price minus its basis. As Nick sets the stage for a deeper exploration in subsequent lessons, he provides a sneak peek into the various elements that comprise the basis, such as purchase price, while keeping the focus on the high-level perspective needed to master the basics first.