Adjusted Basis

Description and Definition of Adjusted Basis

Your adjusted basis in property is the starting point for determining taxable gain or loss. It is generally your original cost, increased by capital improvements, and decreased by depreciation, depletion, and other capital write-offs. Special rules apply to assets you inherit or receive as a gift. Subtract your adjusted basis in property from its net sales price to determine your gain or loss.

Resources

See Also

Further Reading

• Adjusted Basis in the West's Tax Law Dictionary
• Adjusted Basis in “A Dictionary of Taxation”