adjusted tax basis


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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 tax basis

See adjusted basis.
References in periodicals archive ?
In addition, there is a per issuer limit on gains eligible for the exclusion equal to the greater of $10,000,000 or 10 times the adjusted tax basis of stock issued by the small business and disposed of by the investor during a particular year.
section] 743(d) at the time of the conversion of the grantor trust to a nongrantor trust, the partnership will have to decrease its inside adjusted tax basis from $1 million to $325,000 under I.
The adjusted tax basis used to compute the gain or loss on a sale begins with the original cost basis unless the investor acquired the shares by gift or inheritance.
If the fair market value of such real estate assets has decreased below the developer's adjusted tax basis, the sale or transfer of such assets will generally trigger an ordinary loss to the developer.
The exact definition of an "electing investment partnership" is beyond the scope of this article, but can be broadly understood as an electing partnership that has never been engaged in a trade or business, that holds substantially all of its assets for investment, substantially all of whose contributed assets are money, and none of whose contributed assets had an adjusted tax basis in excess of FMV.
The new method is intended to minimize the basis disparities between foreign and domestic assets that may arise when taxpayers use adjusted tax basis to value assets under the TBV method.
As a result of accelerated depreciation, Smith's adjusted tax basis is now $120,000.
Federal income tax principles), with any amount in excess of such current or accumulated earnings and profits treated as a non-taxable return of capital to the extent of the shareholder's adjusted tax basis in the holder's shares and with any amount in excess of such current or accumulated earnings and profits and the holder's adjusted tax basis treated as a capital gain.
6045 for brokers to report proceeds and adjusted tax basis for the sale or exchange of certain debt instruments, securities futures contracts, and options on Form 1099-B.
A NUBIG or NUBIL is defined as "the amount by which the fair market value of the assets of such (loss) corporation is more or less, respectively, than the aggregate adjusted tax basis of such assets at such time.
This means any subsequent sale of property by the LLC would produce gain only to the extent the sales price exceeded the adjusted tax basis.
9) Property is considered section 704(c) property if at the time of contribution to the partnership the fair market value of the property (book value) differs from the contributing partner's adjusted tax basis in the property.