Carryover Basis

Carryover Basis means, in a tax-deferred exchange, the adjusted basis of the property surrendered that is used to determine the tax basis of the property acquired.

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Tax Basis.

Example of Carryover Basis:

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Abel exchanges land with Baker in a tax-deferred exchange. Abel's adjusted basis in the land given up was $10,000. The carryover basis will therefore be $10,000, and (in the absence of boot) that will be Abel's tax basis in the land acquired from Baker.