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  Adjusted Basis Definition
Adjusted Basis The adjusted basis is a part of the equation that is used to determine your gains or losses when your property is sold. This formula takes the original cost of your property, adds in the value of any capital expenditures of improvements to the property and subtracts the amount of any depreciation. After you calculate your adjusted basis, you subtract it from the sales price of your property to determine your gains or losses.
   
   
   


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