The "adjusted cost basis" of a personal residence is a number used for income tax purposes. This number is calculated by adding the "cost of any improvements" made to the property to the original amount paid for it. It is important to note that no "depreciation allowance" is allowed for a personal residence.
These are questions that the above text answers:
1. What is the purpose of calculating the adjusted cost basis of a personal residence?
2. How is the adjusted cost basis of a personal residence calculated?
3. What factors are included in the calculation of the adjusted cost basis?
4. Is a depreciation allowance allowed for a personal residence?
5. What is the significance of the adjusted cost basis for income tax purposes?
6. Are improvements made to the property considered in the calculation of the adjusted cost basis?
7. How does the adjusted cost basis affect property tax calculations?
8. Is the adjusted cost basis of a personal residence the same as its market value?