The basis for a property is generally its cost, where cost is the amount paid for the property and other costs incurred to put it into use. Determining the adjusted basis of the property can sometimes be complex, especially when determining the original basis of the property – especially real estate. What are some adjustments to real estate to arrive at the original basis? Explain the adjusted basis and describe four of the items that may be adjusted.

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The adjusted basis of real estate is a critical factor in calculating the gain or loss when you sell ... View the full answer