Investment cost basis is the total amount spent to acquire or produce an asset. It typically includes both the purchase price and any additional costs incurred in order to hold, maintain, or increase the value of the asset. Examples of additional costs may include commissions, brokerage fees, taxes, transfer costs, insurance, legal fees, storage, and improvements. The cost basis helps investors and business owners assess their overall investment performance and determine the taxable gain or loss for the sale of the asset. In other words, it’s the foundation for evaluating investments on a financial level!