A measure of the cost of a life insurance policy at a given time.
(Usually) the cost of your property plus any expenses you incurred to acquire it. These expenses may include commissions and legal fees. The cost of a capital property is its actual or deemed cost depending on the type of property and how you acquired it. Advisors: Individuals, or a group of individuals, who have experience and expertise greater than your own, and who help you to make financial decisions. Examples: a lawyer, chartered accountant, banker, a stock broker, or a financial planner.
This is an accounting term that attempts to establish the value of real property for tax purposes. It is calculated by starting with the original cost, plus any allowable capital improvements, plus certain acquisition costs, and less any allowable depreciation.
For accounting purposes, the original cost plus improvements minus depreciation or cost recovery taken.
Adjustment to your original cost of property based on improvements made to the home to determine actual profit or loss.
To calculate the "Adjusted Cost Basis," take the amount paid for the item, plus the amount paid for improvements, and then subtract the losses and depreciation. The profit or loss is determined when the owner sells the item, and determines the difference between the sale price and the adjusted cost basis.
The value of property for accounting purposes used to determine the amount of gain or loss realized by the owner upon the sale of the property.
See definition of Basis below. Agent: An entity that acts on behalf of the taxpayer. A Qualified Intermediary cannot be your agent at the time of or during a tax-deferred, like-kind exchange. For 1031 Exchange purposes, an agent includes your employee, attorney, accountant or investment banker or real estate agent or broker within the two-year period prior to the transfer of your first relinquished property. An agency relationship does not exist with entities that offer Section 1031 Exchanges services or routine title, escrow, trust or financial services. (See Related Parties) [Back to Top of 1031 Exchange Glossary
The amount you use to determine your capital gain or loss from a sale or disposition of property. To determine the adjusted cost basis for your property, you must start with the original purchase cost. You then add your purchasing expenses, your cost of capital improvements and principal payments of special assessments (sewer and streets) to the property, and then subtract depreciation you have taken or were allowed to take, any casualty losses taken and/or any demolition losses taken.
The original cost of a property, or V-Day Value, plus improvement costs, plus costs of sale = A.C.B. at sale.
The property cost plus capital improvements, minus depreciation, plus closing costs. The fair market value of the property minus adjusted cost basis equals the indicated gain that would be presently realized without the benefit of the exchange.
For tax purposes, the adjusted cost basis is important when you sell your property, because it allows you to determine what your profit or loss is. You can arrive at the adjusted cost basis by adding the cost of the capital improvements that you've made to the home to the price that you paid for the home. Capital improvements increase your property's value and its life expectancy.
The cost of any improvements the seller makes to the property. Deducting the cost from the original sales price provides the profit or loss of a home when it is sold.
For tax purposes it is the cost of the property plus improvements and minus depreciation, amortization, and depletion. Back to the Top
The addition of any improvement costs a seller makes to a property. Deducting this cost figure from the original sales price will provide the realized profit or loss upon sale.
With regard to income taxes; it is the cost basis, plus any capital improvements, plus any existing assessment liens assumed by the buyer, minus depreciation, minus the gain deferred from any prior transactions.
The value of an asset on the accounting books of a taxpayer; the original cost plus improvements less depreciation.
Tax purpose cost measuring method that allows cost to be increased by the cost of capital improvements or reduced due to depreciation. The cost of a home would be increased by the amount paid to install a permanent improvement such as air conditioning.
The amount paid for an item, plus the amount paid for improvements, minus losses and depreciation. When the owner sells the item, the difference between the sales price and the adjusted cost basis is the profit or loss.