The amount of loss realized on the sale of property is computed by subtracting adjusted basis from amount realized.

Question

Quizplus · Accepted Answer

This is correct according to IRS rules. The adjusted basis is the original cost of the property plus any improvements or adjustments, and the amount realized is the price the property was sold for. Subtracting the adjusted basis from the amount realized gives the amount of gain or loss on the sale.

The Amount of Loss Realized on the Sale of Property