Cost basis is the original value of an asset for tax purposes, usually the purchase price, adjusted for stock splits, dividends and return of capital distributions. This value is used to determine the capital gain, which is equal to the difference between the asset’s cost basis and the current market value. The term can also be used to describe the difference between the cash price and the futures price of a given commodity—Read more at Investopedia. Chen, James. “Cost Basis.” 22 June 2019.