what is basis of premium
In general, bond premium is the amount by which your basis in a debt instrument right after you acquire it is more than the total of all amounts payable on the debt instrument after you acquire it (other than payments of qualified stated interest). For more information about bond premium, see Pub. 550 and Pub.1212.
The primary purpose of a premium audit is to calculate your final premium. basis (usually payroll or sales) multiplied by a rate. by how the exposure base is classified. codes and rates are used in determining your final premium. of premium and/or classifications for your business.