adjusted basis


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Adjusted basis

Price from which to calculate and derive capital gains or losses upon sale of an asset. Account actions such as any stock splits that have occurred since the initial purchase must be accounted for.

Adjusted Basis

The cost of an asset after various deductions and additions such as depreciation, brokerage fees, or dividends. Tax on such an asset is calculated from the adjusted basis rather than the price that was actually paid.

adjusted basis

The acquisition cost of an asset after it has been adjusted to reflect changes in cost basis that result from the occurrence of certain events following the day of acquisition. For example, stock dividends, stock splits, and dividends deemed to be returned on capital cause a downward adjustment in the cost basis of a security. Conversely, commissions result in an upward adjustment in the cost basis. Adjusted basis is used in calculating gains and losses for tax purposes.

adjusted basis

A tax and accounting term referring to the original acquisition cost of a property, with the following adjustments:

• Depreciation, which reduces the basis

• Capitalized closing costs, which increase the basis

• Capital improvements, such as a new roof, which increase the basis

The difference between the adjusted basis and the ultimate sale price of a property will be the taxable profit on the sale.The adjusted basis is an extremely important tax concept,and one which it is important to master in order to comfortably evaluate properties.

Adjusted Basis

The cost or other original basis of property reduced by adjustments such as depreciation allowed or allowable and casualty losses, and increased by the cost of capital improvements, expenses of purchase, and other adjustments.
References in periodicals archive ?
On a non-seasonally adjusted basis, prices fared better, gaining 0.
accumulated production expenditures with respect to the improvement consist of (i) All direct and indirect costs required to be capitalized with respect to the improvement, (ii) In the case of an improvement to a unit of real property (A) An allocable portion of the cost of land, and (B) For any measurement period, the adjusted basis of any existing structure, common feature, or other property that is not placed in service or must be temporarily withdrawn from service to complete the improvement (associated property) during any part of the measurement period if the associated property directly benefits the property being improved, the associated property directly benefits from the improvement, or the improvement was incurred by reason of the associated property.
On a non-seasonally adjusted basis, registered unemployment reached 20,671, down from 22,365in August.
Indeed, this was evidenced in the fourth quarter by a stabilization in adjusted basis revenues relative to 2008 and the first nine months of 2009, and a significant reduction in our adjusted basis operating loss compared to 2008.
The numbers were even higher on a non-seasonally adjusted basis, with 82,000 properties changing hands during July.
The number of transactions was even higher on a non-seasonally adjusted basis, with 82,000 properties changing hands during July.
Further, a record 19,062 people were declared bankrupt on a seasonally adjusted basis during the first three months of the year, 23.
Thus, no adjusted basis has to be allocated to the gift portion, but can be used entirely to reduce the gain.
Taxpayers should retain proof of their home's purchase price and other records that document the costs of improvements, additions and other items affecting the home's adjusted basis not just for three years (the traditional retention period for tax records), but rather for the entire span of home ownership plus an additional three years from the point of sale.
The statistics office said output prices on a non-seasonally adjusted basis rose by 0.
The excess of the FMV of the assets received over the adjusted basis of the shareholder's stock represents the amount of gain to be recognized by the shareholder.
167(g)1 requires the lower of adjusted basis or fair market value (FMV) at the time of conversion be used for figuring depreciation and, if the property is eventually sold at a loss, for determining the amount of the loss.