 Sam
Site Admin
Joined: 21 May 2005
Posts: 281
Location: CALIFORNIA
117.49 Dollars($)
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 Posted: Fri Apr 09, 2004 3:39 am Post subject: Adjusted Book Basis |
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Adjusted Book Basis is the purchase price of a property in which the original cost of a property is added to the value of any capital expenditures for improvement of the property (including supplies and materials purchased for major repairs or additions, legal fees, recording fees, and similar charges), deducting any depreciation and casualty losses taken. It is used in calculatingcapital gains or loss.
To Sum Up, Adjusted Book Basis = (Original cost of the property + Capital expenditures)
- Depreciation.
For example, let the original cost of the property be $400,000. Let capital expenditure be $4,000 and depreciation amount be $6,000. Therefore,
Adjusted Book Basis = $398,000. |
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