Adjusted basis
The original cost of a property plus capital improvements minus depreciation taken. Used to calculate gain or loss upon sale; the lower the basis, the higher the taxable gain.
Learn about this term
Related Terms
Stepped-up basis
The adjustment of an inherited asset's basis to its fair mar...
Carryover basis
When property is transferred by gift, the recipient takes th...
Depreciation recapture
Tax on depreciation previously deducted on property used par...
Realization
The tax principle that gains or losses are not recognized un...