--- title: Basis Definition | Cost Basis & Tax Basis Defined description: Basis is an asset that is the original purchase price of investment property plus any out-of-pocket expenses related to the acquisition of the property. image: https://www.realized1031.com/hubfs/social-suggested-images/Realized_Glossary_Graphic-2.jpg --- [![Realized 1031 Exchange Marketplace](https://www.realized1031.com/hs-fs/hubfs/Images/Brand/Logo/Realized/Realized-Logo-Black.png?width=240&height=80&name=Realized-Logo-Black.png "Realized 1031 Logo") ](https://www.realized1031.com/) - Better Business Bureau Rating: **A+** - [FINRA BrokerCheck](https://brokercheck.finra.org/firm/summary/22333) - [Call](tel:1-877-797-1031) **(877) 797-1031** # Basis Basis, in the context of commercial real estate, is the original purchase price or cost of investment property plus any out-of-pocket expenses or closing costs related to the acquisition of the property. Also known as “cost basis” or “tax basis”. For example, if an investor purchases a property for $1,000,000 and pays $10,000 for title insurance and another $10,000 in loan fees, their initial basis in the property would be $1,020,000.  It is important to note that a taxpayer’s tax basis in a given asset may include several other adjusting factors such as accumulated depreciation deductions claimed during the time of ownership or the value of deferred capital gains from [tax deferred](https://www.realized1031.com/glossary/tax-deferred) exchanges executing during the acquisition of the asset. This is known as [Adjusted Basis](https://www.realized1031.com/glossary/adjusted-basis). 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