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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Instead, the adjusted basis of the retained intangibles is increased by the unrecognized loss.
Section 357(c), however, requires the taxpayer to recognize a gain when the liabilities the corporation assumes, plus the liabilities on the transferred property, are greater than the property's adjusted basis.
197 intangibles, determined by amortizing the intangible's adjusted basis over 15 years, beginning with the month it was acquired.
To determine the adjusted basis per share, the total cost of the shares in the group at the time of disposition is divided by the total number of shares in the group.
The deductible loss is limited to the lesser of the (1) property's adjusted basis or (2) difference between the property's fair market value (FMV) immediately before and after the theft.
Under section 731(a)(1), partners recognize gain on partnership distributions only to the extent the "money" distributed exceeds the adjusted basis of a partner's interest in the partnership.
Generally, a building's adjusted basis is equal to its purchase price less land value, plus capital improvements made, less depreciation taken.
The contract would increase--or index--for inflation the adjusted basis of certain capital and other assets for purposes of determining the gain or loss on sale.