Adjusted Tax Basis
Barron's Real Estate Dictionary:
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Adjusted Tax Basis
The original cost or other basis of property, reduced by depreciation deductions and increased by capital expenditures .
Example: Collins buys a lot for $100,000. She erects a retail facility for $600,000, then depreciates the improvements for tax purposes at the rate of $15,000 per year. After 3 years her adjusted tax basis is $655,000 [$100,000 + $600,000 – (3 ¥ $15,000)].
Example: Collins buys a lot for $100,000. She erects a retail facility for $600,000, then depreciates the improvements for tax purposes at the rate of $15,000 per year. After 3 years her adjusted tax basis is $655,000 [$100,000 + $600,000 – (3 ¥ $15,000)].
| Adjusted Sales Price, Adjustable-Rate Mortgage (ARM) | |
| Adjustment Index, Adjustment Interval |
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Adjusted Tax Basis
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Barron's Real Estate Dictionary
Dictionary of Real Estate Terms. Copyright © 2008 by Barron's Educational Series, Inc. All rights reserved.
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