Video: Introduction to Basis and Holding Period of Assets

In this lesson, dive into the importance of determining the basis and holding period for various types of assets with Nick Palazzolo, CPA. He demystifies why calculating the correct basis is essential for depreciation of tangible assets, sales of items like stock or real estate, and compliance with tax regulations. Nick explains the concept of step-up or step-down basis during asset inheritance or gifting and covers the importance of recognizing the original and adjusted basis to accurately account for capital gains or losses. Not only does Nick provide insights into the tax implications of holding periods for stocks and real property, but he also offers practical insights on the implications of a holding period on tax rates for short-term versus long-term asset holdings. Whether it's understanding capitalization versus expensing or determining the depreciable base and applicable transaction costs, Nick ensures that each nuance is addressed to equip you with the knowledge needed to tackle this critical concept. With his expertise, you're bound to gain a sound understanding of the foundation for asset management and tax planning in the world of accounting.