The cost or other basis of a capital asset is the original purchase price or other cost basis, such as transfer costs or improvement costs, of the asset. This amount is used to determine the gain or loss on the sale or exchange of the asset. Form 2438 requires taxpayers to report the cost or other basis for each capital asset sold or exchanged during the tax year. Taxpayers should keep accurate records of their purchase prices and other costs related to the acquisition of capital assets to ensure they can accurately report the cost basis on their tax return.