The adjusted basis can defined as:

Question

Quizplus · Accepted Answer

The adjusted basis is the original cost of the property plus any capital improvements made and minus any accumulated depreciation taken. This formula is commonly used to determine the gain or loss on the sale of the property. Option B is the formula for calculating the seller's net proceeds, not the adjusted basis. Option C only subtracts accumulated depreciation and does not take into account the original cost or capital improvements. Option D only subtracts the mortgage balance and sales costs and does not take into account the original cost or any capital improvements.

The Adjusted Basis Can Defined As