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Insider Secrets to Financing Your Real Estate Investments
Paperback: 261 pages
Pub: McGraw-Hill
ISBN: 0071422579
Available at:Amazon
Adjusted Basis
       
  ORIGINAL BASIS, Purchase Price of Real Estate  
  Plus Cumulative Capital Additions  
  Plus Costs of Sale  
  Less Cumulative Depreciation, Real Estate  
  Less Cumulative Depreciation, Capital Improvements  
  ADJUSTED BASIS AT SALE  
       
Automatic Recalculation 

Adjusted Basis

The original cost of an asset, such as real estate, plus capital improvements, less accumulated depreciation and costs of sale. The taxable gain at the time of sale is, in general, the selling price less the adjusted basis.