Adjusted Tax Basis

Also called, adjusted cost basis, this is the net book value of a property, on which a capital gain or loss is based. This calculation begins with the basis (original purchase price), to which capital improvements made since the purchase and buying expenses are added; any depreciation taken for tax-related deductions is then subtracted from that amount to arrive at the adjusted tax basis. When the property is sold, the capital gains tax is calculated as the new sales price minus the tax basis. For more information, see the "All About Capital Gains" article in the "Real Estate Investing" section.

Real Estate 101

Real Estate 101

This book makes it easy to not only buy a home, but figure out everything that you need to do, even get a loan. In simple and easy to understand language, it talks about where you should buy a home, what to look for in a home, how to find a home, how to get an agent, how to get a mortgage and more. This is a step by step process that you, a new home buyer, can use to purchase a home.

Get My Free Ebook


Post a comment