adjusted basis

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adjusted basis

n. in accounting, the original cost of an asset adjusted for costs of improvements, depreciation, damage and other events which may have affected its value during the period of ownership. This is important in calculating capital gains for income tax purposes since the adjusted basis is higher than the original price and will lower capital gains taxes. (See: basis, income tax)

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Can selective use of tax basis for financial statements, i.e., modified tax basis statements, qualify as an OCBOA?

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