Home / CPA Course / REG
Basis of assets
REG Chapter 10 · Area III · Blueprint III.A
Every gain, loss and depreciation deduction starts with one number: basis. Get it wrong and every later figure on the return is wrong too. This chapter follows Owen Hale, a Harbor Lane client who buys equipment for his bakery, turns his old house into a rental, receives stock as a gift, inherits his aunt's land, and sells shares at a loss and buys them back too soon. The Blueprint asks you to calculate basis in each of these situations, plus the basis of intangibles such as organization, start-up and loan costs. Figures are for tax year 2026.
In this chapter
- Basis of purchased business assets
- Property converted from personal to business use
- Property received as a gift
- Property inherited from a decedent
- Basis of stocks, funds and digital assets
- Wash sales
- Basis of intangibles: start-up, organization and loan costs
This chapter has 7 lessons, 50 practice MCQs with explanations and 20 simulations, plus flashcards and a recall sheet.
What this chapter covers
- Purchased business assets
- personal use converted to business
- gifts and inheritances
- wash sales
- organization, start-up and loan costs