adjusted basis

adjusted basis
adjusted basis see basis 3

Merriam-Webster’s Dictionary of Law. . 1996.

adjusted basis
n.
Basis plus additions to capital minus depreciation.

The Essential Law Dictionary. — Sphinx Publishing, An imprint of Sourcebooks, Inc. . 2008.


adjusted basis
An owner's original tax basis in an asset, adjusted for various events during the period of ownership. The costs of capital improvements are added to the original basis (which is normally the price the owner paid for the asset). The costs of damage or deprecation are subtracted from the original basis. Adjusted basis is used to calculate the owner's capital gain or loss for income tax purposes if the property is sold, or an inheritor's tax basis if the asset passes at the owner's death.
Category: Real Estate & Rental Property → Selling a House
Category: Wills, Trusts & Estates

Nolo’s Plain-English Law Dictionary. . 2009.

adjusted basis
USA
basis is often increased or decreased for various tax-related items. The result of these adjustments to the basis is the adjusted basis. Generally, basis is increased by allowable capital expenditures (such as the cost of improvements) and decreased by certain deductions (such as for depreciation, depletion or amortization) and other tax-related items. A taxpayer needs to know its basis (or adjusted basis if applicable) to figure any gain or loss on the sale or other disposition of the property or any allowable depreciation, depletion, or amortization deductions.
See also

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

adjusted basis
n.
   in accounting, the original cost of an asset adjusted for costs of improvements, depreciation, damage and other events which may have affected its value during the period of ownership. This is important in calculating capital gains for income tax purposes since the adjusted basis is generally higher than the original price and will lower capital gains taxes.
   See also: basis, income tax

Law dictionary. . 2013.

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Look at other dictionaries:

  • Adjusted basis — In tax accounting, adjusted basis is the net cost of an asset after adjusting for various tax related items.Adjusted basis is one of two variables in the formula used to compute gains and losses when determining gross income for tax purposes. The …   Wikipedia

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  • Adjusted Basis (real estate) — Adjusted Basis or Adjusted Tax Basis refers to the original cost or other basis of property, reduced by depreciation deductions and increased by capital expenditures. Example: Brad buys a lot for $100,000. He then erects a retail facility for… …   Wikipedia

  • adjusted basis — For income tax purposes, the original cost or other original basis, adjusted for such things as casualty losses, improvements, and depreciation, when appropriate …   Ballentine's law dictionary

  • adjusted basis — Price from which to calculate and derive capital gains or losses upon sale of an asset. Account actions such as any stock splits that have occurred since the initial purchase must be accounted for. Bloomberg Financial Dictionary …   Financial and business terms

  • basis — ba·sis / bā səs/ n pl ba·ses / ˌsēz/ 1: something (as a principle or reason) on which something else is established the court could not imagine any conceivable basis for the statute see also rational basis 2: a basic principle o …   Law dictionary

  • basis — Fundamental principle; groundwork; support; the foundation or groundwork of anything; that upon which anything may rest or the principal component parts of a thing. Accounting. Term used in accounting, especially in tax accounting, to describe… …   Black's law dictionary

  • basis — Fundamental principle; groundwork; support; the foundation or groundwork of anything; that upon which anything may rest or the principal component parts of a thing. Accounting. Term used in accounting, especially in tax accounting, to describe… …   Black's law dictionary

  • Adjusted Gross Income — (AGI) is a United States tax term for an amount used in the calculation of an individual s income tax liability. AGI is calculated by taking an individuals gross income and subtracting the income tax code s enumerated deductions, and is an… …   Wikipedia

  • adjusted gross income — n: an individual s gross income decreased by the amount of deductions allowed esp. for business expenses Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. adjusted gross income …   Law dictionary

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