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.

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RELATED FAQS
  1. What is an adjusted cost basis and how is it calculated?

    Learn what adjusted cost basis is, how it is calculated, and why this metric is important for investors, business owners ... Read Answer >>
  2. Are current assets liquid or capital?

    Take a deeper look at liquid current assets for businesses and individuals, and learn how they differ from other types of ... Read Answer >>
  3. Are capital assets normally immediately expensed or are they amortized/depreciated ...

    Understand the distinction between capital assets and business expenses, and learn whether capital assets are usually expensed ... Read Answer >>
  4. Does working capital include marketable securities?

    Learn how marketable securities such as Treasury bills (T-bills) and commercial papers are part of current assets and the ... Read Answer >>
  5. What are the deductions taken to determine AGI (adjusted gross income)?

    Read more about the deductions taken to arrive at adjusted gross income, or AGI, including the differences between above ... Read Answer >>
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    Learn why stocks are classified as financial assets, not real assets. Understand the properties that determine whether an ... Read Answer >>
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