Adjusted Basis

AAA

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.

INVESTOPEDIA EXPLAINS 'Adjusted Basis'

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

RELATED TERMS
  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. Adjusted Cost Base - ACB

    An income tax term that refers to the change in an asset's book ...
  4. Declining Balance Method

    A common depreciation-calculation system that involves applying ...
  5. Unadjusted Basis

    A basis used for depreciation purposes. Unadjusted basis uses ...
  6. Useful Life

    An estimate of how long one can expect to use an income-producing ...
Related Articles
  1. Dividend Facts You May Not Know
    Investing Basics

    Dividend Facts You May Not Know

  2. Avoiding Too Much Tax On Your Distributions
    Retirement

    Avoiding Too Much Tax On Your Distributions

  3. Will Your Home Sale Leave You With Tax ...
    Taxes

    Will Your Home Sale Leave You With Tax ...

  4. A Tax Primer For Homeowners
    Taxes

    A Tax Primer For Homeowners

comments powered by Disqus
Hot Definitions
  1. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  2. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  3. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  4. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  5. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  6. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
Trading Center