This refers to how much a property owner will lose or gain once they sell their property. It is calculated by taking the original cost basis of a property, adding any capital expenditures for improvements and related expenses, and then subtracting the total accumulated cost recovery deductions taken for depreciation and depletion.
Adjusted Basis
This refers to how much a property owner will lose or gain once they sell their property. It is calculated by taking the original cost basis of a property, adding any capital expenditures for improvements and related expenses, and then subtracting the total accumulated cost recovery deductions taken for depreciation and depletion.