[Verse 1] When you buy a stock or sell your home The basis tells you what you've sown Original cost plus improvements made That's where your tax foundation's laid Section ten-oh-one will guide your way Through gains and losses every day [Chorus] Basis is the bedrock, amount realized on top Subtract to find your gain or loss, the calculation stops Gifted property carries over, inherited steps up high One-oh-one-five and one-oh-one-four, the sections that apply [Verse 2] Adjusted basis starts with cost Then add improvements, nothing's lost Depreciation taken out That's what adjustment's all about From purchase price to selling day Adjustments change along the way [Chorus] Basis is the bedrock, amount realized on top Subtract to find your gain or loss, the calculation stops Gifted property carries over, inherited steps up high One-oh-one-five and one-oh-one-four, the sections that apply [Bridge] When Grandma gives you property with love Her basis follows like a dove But if she passes, stepped-up rules Fair market value breaks the old-school tools Multiple assets need division Allocate with precision [Verse 3] Dual basis for the gifted gain Use donor's number, not your pain But for a loss, fair market price At gift time makes the sacrifice Death brings a cleaner slate around Fair market value, newly crowned [Chorus] Basis is the bedrock, amount realized on top Subtract to find your gain or loss, the calculation stops Gifted property carries over, inherited steps up high One-oh-one-five and one-oh-one-four, the sections that apply [Outro] From cost to sale, the basis tells the tale In tax computations, it will never fail
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