Definitions for

**"adjusted basis"****Related Terms:**Adjusted cost basis, Adjusted cost base, Original basis, Cost basis, Basis, Cost recovery, Net capitalized cost, Depreciation recapture, Acb, Ebitda, Adjusted capitalized cost, Tax basis, Realized gain, Cca, Straight-line depreciation, Amount realized, Capital cost allowance, Recapture, Ebitda margin, Nopat, Earnings before interest, taxes, depreciation and amortization, Depreciation, Profit, Depreciation expense, Capitalize, Capital allowances, Gain, Capital cost, Declining balance depreciation, Gross margin, Operating profit, Net sales, Modified accelerated cost recovery system, Accumulated depreciation, Trading profit, Net proceeds, Accelerated cost recovery system, Gross profit margin, Economic value added, Accelerated depreciation, Net profit, Earnings before interest and taxes, Gross investment, Gross profit, Gross sales, Rate base, Net yield, Step-up in basis, Capital gains tax, Plus valia

The base price of an asset or security that reflects any deductions taken on...

original cost minus certain deductions, plus certain improvement costs. definition of adjustment basis defined definition of adjusted basis defined

The value attributed to an asset or security that reflects any deductions taken on, or capital improvements to, the asset or security. Adjusted basis is used to compute the gain or loss on the sale or other disposition of the asset or security.

The original cost of a property plus the cost of any improvements such as an addition.

The income tax basis of an asset, equal to the original basis reduced by the amount of depreciation expense claimed and/or increased by the cost of any improvements made.

The base price from which to judge capital gains or losses upon sale of an asset like a stock or bond. The price has to be adjusted to account for any stock splits that have occurred since the initial purchase before arriving at the adjusted basis.

The basis of the property adjusted for any capital improvements or depreciation. To calculate the adjusted basis, take the basis (the cost of the property) and add the cost of any capital improvements made to the property during the exchanger's ownership, and subtract any depreciation taken on the property during the same time period. Once the adjusted basis is known, gain or loss can be computed on a transaction.

The original basis plus improvement costs minus the depreciation of the property.

The cost of an asset (its basis) adjusted downward for depreciation (for business property), upward for improvements (for real estate), or upward or downward for withdrawals or reinvestment (as to securities, funds, accounts, insurance or annuities). Adjusted basis is used to compute gain or loss on a sale or exchange of an asset. It is also the basis on which depreciation is calculated.

The undepreciated amount of an asset's original cost that is used, for tax purposes, to calculate the gain or loss on disposition of the asset.

The original cost of an asset, such as real estate, plus capital improvements, less accumulated depreciation and costs of sale. The taxable gain at the time of sale is, in general, the selling price less the adjusted basis.

The basis of a property adjusted for any capital improvements or depreciation. To calculate the adjusted basis, add the basis (the cost of the property), to the cost of any capital improvements made to the property during the taxpayer's ownership, and subtract the depreciation taken on the property during that specific time period. Once the adjusted basis is known, the gain or loss can be computed.

The cost of property purchased by the owner, plus additions and minus deductions required by statute for various types of expenditures, transactions or recoveries of capital. Property received by gift carries over the same basis as the donor's adjusted basis; the basis of property inherited from a decedent is stepped up to the value of the property at decedent's death.

The initial cost of a property, along with the value of any improvements, minus any claimed depreciation. The adjusted sale price of the property minus commissions, legal fees and any additional costs of selling.

Modification of the cost of a capital asset for income tax purposes.

The basis of property, adjusted for allowable capital expenditures and deductions, used to determine the value against which gain or loss is measured.

The original tax basis of an asset, plus such items as property improvements or additions, and minus depreciation.

The value of an asset that determined by taking the original cost, adding and capital expenditures for improvements, and subtracting any depreciation.

The basis or original cost of a property reduced by allwoable cost recovery (depreciation) and increased by capital improvements. Or [COST + CAPITAL IMPROVEMENTS - COST RECOVERY = ADJUSTED BASIS

The price paid for a principal residence minus the amount of any profit made from the sale of a previous home(s), according to the IRS.

Used for determining depreciation and gain or loss on the disposition of an asset. Your adjusted basis in an asset is your beginning basis (see Basis, below), decreased by depreciation, depletion or any Sec. 179 expense taken or increased by capital additions. For example, you purchase a machine for $10,000 (your basis) and take a Sec. 179 expense deduction of $1,000 and depreciation of $2,000 in the first year. At the end of the year your adjusted basis is $7,000. Note. Even professionals often say basis when they really mean adjusted basis.

"Adjusted Basis" refers to the amount used to determine profit or loss from a sale or property trade. To calculate this amount for an asset, take the original amount paid, add improvement and assessment costs, and then subtract deductions. Deductions can include down grading, depreciation, or depletion.

The amount paid for property, plus all subsequent capital expenditures made to improve it, minus all tax deductions for depreciation of cost recovery allowances.

Adjustments (increases or decreases) made to the basis of a home. (The basis is the amount paid if the home was bought or built.)

The cost of a property plus the value of any capital expenditures for improvements to the property minus any depreciation taken.

After a taxpayer's basis in property is determined, it must be adjusted upward to include any additions of capital to the property and reduced by any returns of capital to the taxpayer. Additions might include improvements to the property and subtractions may include depreciation or depletion. A taxpayer's adjusted basis in property is deducted from the amount realized to find the gain or loss on sale or disposition.

The basis of property after certain adjustments (increases such as capital improvements and decreases such as prior-year depreciation) are made to determine the basis to be used for determining gain or loss on a sale, exchange, or other disposition of the property or calculating allowable depreciation, depletion, or amortization.

The cost or other original basis of property reduced by adjustments such as depreciation allowed or allowable and increased by capital improvements and other adjustments.

Simply stated, the adjusted basis is equal to the purchase price, plus capital improvements, less depreciation. Transactions involving exchanges, gifts, probates and trust distributions may impact the property's adjusted basis. The Exchanger's tax and legal advisor is the party to look to determine adjusted basis.

The base price that is used to assess capital gains and losses when a security is sold. When net proceeds are used for tax purposes, the commissions are deducted at the time of sale. If any stock splits have occurred since the original purchase, the stock's price needs to be adjusted to obtain a correct adjusted basis. See: Capital Gain

Generally referred to as the original purchase price of a property (cost basis), plus capital improvements made, minus total depreciation taken, plus costs of sale. Additional costs may be included.

The value of an asset (property or otherwise) that includes the original price plus the value of any improvement, and less any applicable depreciation.

Basis is the cost of property. Adjusted basis is the cost paid plus any additional money you put into the property, and it is used to figure out the amount of tax you'll owe when you sell the property. Example: you pay $50 for a bookshelf and spend $5 to paint it. If you sell it for $100, you'll pay tax on the $45 profit you made. The sale price of $100 minus the adjusted basis of $55 shows you your profit.

Original cost of the property plus capital expenditures for improvements minus depreciation.

Original basis minus any reductions made because of amortization, -depletion, depreciation, or losses claimed, plus any additions made because of carrying charges or additions or improvements to the asset. Also see “Amortize,” “Basis,” “Capital asset,” “Carrying charge,” “Depletion,” “Depreciation,” “Loss,” and “Original basis.

The cost of property (or a substitute figure-see "Basis") with adjustments made to account for depreciation (in the case of business property), improvements (in the case of real estate), withdrawals or reinvestment (in the case of securities, funds, accounts, insurance or annuities), etc. Adjusted basis is part of the computation for determining gain or loss on a sale or exchange and for depreciation.

A measure used as a starting point for determining a gain or loss on the sale of property. Certain capital expenditures, depreciation, etc. can increase or decrease your basis.

The original cost of property, plus certain additions and improvements, minus certain deductions such as depreciation allowed or allowable and casualty losses.

The valuation of a property including the original price plus improvements, than subtracting out depreciation.

A calculated measure, which reflects profit or loss in property value. The value is reduced by depreciation, increased by the cost of improvements.

Generally speaking in a standard purchase of real property, the adjusted basis is equal to the purchase price plus capital improvements less depreciation. Transactions involving exchanges, gifts, probates and receiving property from a trust can have an impact on calculating the property's adjusted basis. The taxpayer's C.P.A. or tax advisor is the party to look to for these types of questions.

The total of the original cost of a property and the value of any capital expenditures for improvements done to it, minus any depreciation taken

The cost of property after adjustment for certain deductions or additions as permitted or prescribed by the U.S. tax laws. In some instances, the basis of property is derived from the basis of other parties - such as a donor or an estate.

Your basis in property is the stepping-off point for determining taxable gain or loss when you sell it. The basis generally starts out as what you pay for the property; although special rules apply to assets you inherit or receive as a gift. Your basis can be adjusted while you own property. When you buy rental property, for example, the basis begins at what you pay for the place, including certain buying expenses and it is adjusted upward by the cost of permanent improvements. The basis is reduced by the amount of any depreciation you are allowed to deduct (regardless of whether you actually claim it) while you own the property. You use your adjusted basis to figure the gain or loss on the sale. When stock or mutual fund shares are involved, your adjusted basis is the cost of the shares plus any brokerage commissions or load fees minus any return of capital payouts.

(Tax and Accounting based) The amount of depreciation of an asset still available to be taken in the future after reducing the original basis by all depreciation taken to date.

Original cost of property plus any later improvements and minus a figure for depreciation claimed.

The amount you use to determine your profit or loss from a sale or exchange of property. To determine your adjusted basis for an asset, start with the amount you originally paid, add your cost of improvements and assessments, then subtract deductions you have taken, such as depreciation and depletion.

Adjusted Basis or Adjusted Tax Basis refers to the original cost or other basis of property, reduced by depreciation deductions and increased by capital expenditures.

In tax accounting, adjusted basis is the net cost of an asset after adjusting for various tax-related items.

Adjusted debit balance (ADB) Adjusted exercise price

adjusted, net sales price of stock or bonds after adjusting for stock splits and deducting commissions

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