What is the concept of tax basis?

@daniela 

Tax basis refers to the value of an asset for tax purposes, usually used to calculate taxable gains or losses when the asset is sold or transferred. It represents the original cost or investment made in an asset, adjusted for certain factors such as depreciation, improvements, or deductions taken over time. Tax basis is crucial in determining the amount of taxable gain or loss upon the sale or transfer of an asset, as it helps establish the starting point for calculating the difference between the sale price and the asset's tax basis.