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?