The "unadjusted basis" is the original cost of the property. To figure out the "adjusted basis," you need to add any improvements you have made to the property and subtract any "depreciation" from the original cost. This value is needed to calculate any "capital gains tax" you may owe.


These are questions that the above text answers:

1. What is the unadjusted basis of a property?
2. How is the adjusted basis of a property calculated?
3. What is depreciation in real estate?
4. What is the purpose of calculating the adjusted basis?
5. What is the significance of improvements in determining the adjusted basis?
6. How does depreciation affect the adjusted basis?
7. What is capital gains tax?
8. Why is the adjusted basis important for calculating capital gains tax?
9. How does the adjusted basis impact the amount of capital gains tax owed?

Functional obsolescence is when a property's "utility" or usefulness is reduced due to certain factors, which in turn can lower its value and make it harder to sell.


These are questions that the above text answers:

1. What is functional obsolescence in real estate?
2. How does functional obsolescence affect property value?
3. What factors can contribute to functional obsolescence?
4. How does functional obsolescence impact the sale of a property?
5. What is the relationship between utility and functional obsolescence?
6. How does functional obsolescence differ from depreciation?
7. Can functional obsolescence be reversed or mitigated?
8. Are there any legal implications associated with functional obsolescence?
9. How can property owners identify functional obsolescence in their properties?
10. Are there any strategies to prevent or minimize functional obsolescence in real estate?

"Obsolescence" is a decrease in value of a building due to it becoming "outdated" or "unfashionable". It has nothing to do with the upkeep of the property, such as needing a new coat of paint or showing signs of wear and tear.


These are questions that the above text answers:

1. What is obsolescence in the context of real estate?
2. How does obsolescence affect the value of a building?
3. Is obsolescence related to the physical condition of a property?
4. What factors contribute to a building becoming obsolete?
5. Does obsolescence impact the need for maintenance or repairs?
6. Can obsolescence be reversed or mitigated?
7. Is obsolescence the same as wear and tear?
8. How does obsolescence differ from depreciation?
9. Are there any dangers associated with building obsolescence?
10. Does obsolescence affect the marketability of a property?

Economic obsolescence is a decrease in the value of a property caused by external factors, not the condition of the property. An example of this is "an oversupply of similar properties" in the area near the subject property.


These are questions that the above text answers:

1. What is economic obsolescence in real estate?
2. How does economic obsolescence affect property value?
3. What causes economic obsolescence in real estate?
4. Can economic obsolescence be attributed to the condition of a property?
5. How does an oversupply of similar properties impact property value?
6. Is economic obsolescence caused by internal or external factors?
7. What factors contribute to economic obsolescence?
8. How can economic obsolescence be measured in real estate?

The "utility" of a property refers to its usefulness. "Obsolescence" is when a property becomes outdated and is no longer as useful as it once was. This is usually the biggest factor in reducing its value. However, if a property is "properly maintained", its age will not have a big impact on the value. Deterioration and lack of maintenance can also reduce the value, but these issues can usually be fixed.


These are questions that the above text answers:

1. What does "utility" refer to in real estate?
2. How does obsolescence affect property value?
3. What is the biggest factor in reducing a property's value?
4. How does proper maintenance impact a property's value?
5. Can the age of a property have a big impact on its value?
6. What can reduce the value of a property besides obsolescence?
7. Can deterioration and lack of maintenance be fixed?
10. What are some factors that can impact a property's value?

The difference between the "cost" and the "value" of something is called "depreciation". When depreciation happens over a period of time, it is called "accrued depreciation".


These are questions that the above text answers:

1. What is the term used to describe the difference between the "cost" and the "value" of something?
2. What is the term for depreciation that occurs over a period of time?
3. Where can I find fact sheets about real estate in California?
4. What is the topic of the fact sheets in Set 01?
5. What is the subject of the article?
6. What is the difference between cost and value?
7. What is the term for the difference between cost and value?
8. What is accrued depreciation?
9. How is accrued depreciation different from regular depreciation?
10. What does the article discuss about real estate depreciation and obsolescence?

"Economic obsolescence" happens "outside of the property" and not on it.


These are questions that the above text answers:

1. What is economic obsolescence in real estate?
2. How does economic obsolescence differ from physical obsolescence?
3. What is the purpose of identifying and mitigating economic obsolescence?
4. Can economic obsolescence be prevented or eliminated?
5. What are some examples of economic obsolescence?
6. How does economic obsolescence impact the value of a property?
7. Is economic obsolescence a common issue in real estate?
8. Are there any strategies or techniques to mitigate the risk of economic obsolescence?
9. How can real estate owners identify economic obsolescence in their properties?

Functional obsolescence is when something is "out-of-date" or not up to current standards, or when it has been "over improved" to the point where the market won't pay the full cost of the improvement. It does not have to do with how well something is maintained.


These are questions that the above text answers:

1. What is functional obsolescence in real estate?
2. How does functional obsolescence affect property values?
3. What are some examples of functional obsolescence?
4. Does functional obsolescence depend on the maintenance of a property?
5. Can functional obsolescence occur when a property is over-improved?
6. What is the difference between functional obsolescence and being out-of-date?
7. How does functional obsolescence impact the market value of a property?
8. Is functional obsolescence a result of not meeting current standards?
9. Can functional obsolescence be repaired or fixed?
10. Does functional obsolescence affect the cost of improvements made to a property?

Physical deterioration (or "wear and tear") is not the same thing as "obsolescence". Obsolescence typically refers to items that are no longer fashionable or up-to-date. In a neighborhood, obsolescence can cause a decrease in value, such as when a flight path changes.


These are questions that the above text answers:

1. What is the difference between physical deterioration and obsolescence in real estate?
2. How does obsolescence affect the value of a property?
3. Can obsolescence be caused by changes in a neighborhood?
4. What is an example of obsolescence in real estate?
5. Does physical deterioration refer to wear and tear?
6. Can obsolescence impact the value of a property negatively?
7. Is obsolescence related to fashion or being up-to-date?
9. Can a change in flight path cause obsolescence in a neighborhood?
10. Does obsolescence affect the value of real estate in general?

The IRS tax code states that "frame dwellings" have an "economic life" of 27 1/2 years.


These are questions that the above text answers:

1. What is the "economic life" of frame dwellings according to the IRS tax code?
2. How many years does the IRS tax code state as the "economic life" of frame dwellings?
3. What is the specific term used by the IRS tax code to refer to the lifespan of frame dwellings?
4. According to the IRS tax code, what is the determined economic life of frame dwellings?
5. How long does the IRS tax code consider frame dwellings to be economically viable?
6. What is the duration of the economic life of frame dwellings as defined by the IRS tax code?
7. What is the specified time period for the economic life of frame dwellings according to the IRS tax code?
8. In the IRS tax code, what is the designated lifespan for frame dwellings?
9. According to the IRS tax code, how many years can frame dwellings be economically productive?
10. What is the timeframe for the economic viability of frame dwellings as outlined in the IRS tax code?