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File taxes Publication 551 - Introductory Material Table of Contents What's New Reminder IntroductionOrdering forms and publications. File taxes Tax questions. File taxes Useful Items - You may want to see: What's New Property acquired from a decedent who died in 2010. File taxes Property acquired from a decedent dying in 2010 will no longer have an automatic increase in basis. File taxes See Publication 4895, Tax Treatment of Property Acquired From a Decedent Dying in 2010, for details. File taxes Reminder Photographs of missing children. File taxes The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. File taxes Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. File taxes You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. File taxes Introduction Basis is the amount of your investment in property for tax purposes. File taxes Use the basis of property to figure depreciation, amortization, depletion, and casualty losses. File taxes Also use it to figure gain or loss on the sale or other disposition of property. File taxes You must keep accurate records of all items that affect the basis of property so you can make these computations. File taxes This publication is divided into the following sections. File taxes Cost Basis Adjusted Basis Basis Other Than Cost The basis of property you buy is usually its cost. File taxes You may also have to capitalize (add to basis) certain other costs related to buying or producing the property. File taxes Your original basis in property is adjusted (increased or decreased) by certain events. File taxes If you make improvements to the property, increase your basis. File taxes If you take deductions for depreciation or casualty losses, reduce your basis. File taxes You cannot determine your basis in some assets by cost. File taxes This includes property you receive as a gift or inheritance. File taxes It also applies to property received in an involuntary conversion and certain other circumstances. File taxes Comments and suggestions. File taxes We welcome your comments about this publication and your suggestions for future editions. File taxes You can write to us at the following address: Internal Revenue Service Business Forms and Publications Branch SE:W:CAR:MP:T:B 1111 Constitution Ave. File taxes NW, IR-6526 Washington, DC 20224 We respond to many letters by telephone. File taxes Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. File taxes You can email us at taxforms@irs. File taxes gov. File taxes Please put “Publications Comment” on the subject line. File taxes You can also send us comments from www. File taxes irs. File taxes gov/formspubs/, select “Comment on Tax Forms and Publications” under “Information about. File taxes ” Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. File taxes Ordering forms and publications. File taxes Visit www. File taxes irs. File taxes gov/formspubs to download forms and publications, call 1-800-829-3676, or write to the address below and receive a response within 10 business days after your request is received. File taxes Internal Revenue Service 1201 N. File taxes Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. File taxes If you have a tax question, visit IRS. File taxes gov or call 1-800-829-1040. File taxes We cannot answer tax questions sent to either of the above addresses. File taxes Useful Items - You may want to see: Publication 463 Travel, Entertainment, Gift, and Car Expenses 523 Selling Your Home 525 Taxable and Nontaxable Income 527 Residential Rental Property 530 Tax Information for First-Time Homeowners 535 Business Expenses 537 Installment Sales 544 Sales and Other Dispositions of Assets 550 Investment Income and Expenses 559 Survivors, Executors, and Administrators 587 Business Use of Your Home 946 How To Depreciate Property Form (and Instructions) 706 United States Estate (and Generation-Skipping Transfer) Tax Return 706-A United States Additional Estate Tax Return 8594 Asset Acquisition Statement See How To Get Tax Help near the end of this publication for information about getting publications and forms. File taxes Prev Up Next Home More Online Publications