Adjusted Basis


DEFINITION of 'Adjusted Basis'

The proportionate value of an asset or security that reflects any deductions taken on, or capital improvements to the asset or security.

BREAKING DOWN 'Adjusted Basis'

Adjusted basis is used to compute the gain or loss on the sale of an asset or a security.

  1. Nontaxable Distribution

    A type of dividend that is paid to shareholders of a corporation ...
  2. Accelerated Cost Recovery System ...

    A system of depreciation introduced by the Economic Recovery ...
  3. Unadjusted Basis

    A basis used for depreciation purposes. Unadjusted basis uses ...
  4. Declining Balance Method

    A common depreciation-calculation system that involves applying ...
  5. Adjusted Cost Base - ACB

    An income tax term that refers to the change in an asset's book ...
  6. Useful Life

    An estimate of how long one can expect to use an income-producing ...
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  1. Can working capital be depreciated?

    Working capital as current assets cannot be depreciated the way long-term, fixed assets are. In accounting, depreciation ... Read Full Answer >>
  2. Do working capital funds expire?

    While working capital funds do not expire, the working capital figure does change over time. This is because it is calculated ... Read Full Answer >>
  3. How much working capital does a small business need?

    The amount of working capital a small business needs to run smoothly depends largely on the type of business, its operating ... Read Full Answer >>
  4. What does high working capital say about a company's financial prospects?

    If a company has high working capital, it has more than enough liquid funds to meet its short-term obligations. Working capital, ... Read Full Answer >>
  5. How can working capital affect a company's finances?

    Working capital, or total current assets minus total current liabilities, can affect a company's longer-term investment effectiveness ... Read Full Answer >>
  6. What can working capital be used for?

    Working capital is used to cover all of a company's short-term expenses, including inventory, payments on short-term debt ... Read Full Answer >>

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