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Related to adjustments: Adjustments to income


1. A tax deduction taken on a loss, especially on bad debt or accounts receivable that will likely not be collected. One is not liable for income that is not actually realized.

2. In insurance, a payment on a claim. For example, if one has homeowner's insurance and his/her house floods, he/she is entitled to an adjustment, so long as the insurance covers flooding. Arriving at the amount of the adjustment is a complex process and insurance companies employ full-time adjusters to investigate claims and determine what amount, if any, the adjustment should be.

3. In an adjustable-rate mortgage, a change in the interest rate paid on the mortgage. The adjustment may be upward or downward. See also: Adjustment frequency.


Closing: Debits and credits to the purchase price of a property because of items to be paid by the seller or the buyer. All adjustments should be reflected on a settlement statement. (The settlement statement used in home sales is a form,called a HUD-1,created by the Department of Housing and Urban Development.).In appraisal:See adjusted sales price.

References in classic literature ?
Our fears must have been prophetic, for on that same evening the wildwood discharged upon us Milly's preordained confiscator--our fee to adjustment and order.
At last the bollworm had attacked the cotton--the poison ivy was reaching out its tendrils to entwine the summer boarder--the millionaire lumberman, thinly disguised as the Alaskan miner, was about to engulf our Milly and upset Nature's adjustment.
Then," said I, "when you led us against the lumberman--the-- Klondiker--it wasn't altogether on account of the Unerring Artistic Adjustment of Nature?
It is oblong - some thirty feet in length and twenty-five in breadth - a shape affording the best(ordinary) opportunities for the adjustment of furniture.
However, certain stock basis adjustments may be overlooked when not addressed yearly; this item highlights two such adjustments--for nonqualified stock options (NQSOs) and dual consolidated losses (DCLs).
If that is not possible, perhaps we could use the same rationale for proposed audit adjustments that are $1,000,000 or less--a higher threshold would be better.
The CPA firm, whose audit was proceeding during these investor negotiations, proposed adjustments to Medtrans' financial statements showing Medtrans actually had lost $500,000.
There is a movement afoot to limit the authority of the Public Service Commission in making adjustments that would correct faulty calculations of past charges.
Electing large LLCs can treat audit adjustments in one of two ways: 1.