Adjusted Basis
/əˈdʒʌstɪd ˈbeɪsɪs/
Definitions
- (n.) The value used to determine gain or loss on a property for tax purposes after accounting for modifications like improvements or depreciation.
The seller calculated the capital gain by subtracting the adjusted basis from the sale price.
Forms
- adjusted basis
Related terms
See also
Commentary
The adjusted basis is crucial for accurate tax calculation of property transfers; it starts with the original cost basis and is then adjusted for various tax-related events.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.