Cost basis is the original value of a security or other asset used for tax purposes to determine whether a capital gain or loss has been realised when that asset is sold or disposed. Depending upon the tax regulations, the cost basis may be adjusted for commissions, wash sales or corporate actions such as stock splits and return of capital distributions.In certain instances, MEXEM may be required to provide you and the IRS with annual statements reporting the cost basis of securities you've sold. For more information, please see What is a Covered Security?See also: Where can I find the cost basis of my position?