Determining Property Basis
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Overview: Article overviews that whenever property is disposed of by sale, gift, trade, or inheritance, a potential tax consequence exist. The gain or loss from the disposition of the property is determined by comparing the sale price to the adjusted basis in the property. The original basis of the property is adjusted by deductions, such as depreciation, or by additions, such as capital improvements. Adjusted basis is the new basis after additions or deductions to the original basis have been made. Article addresses how basis is initially determined by looking at each of the major ways of acquiring property. It will also briefly define adjusted basis. This article acts as supplementary aid in the publications that deal with estate planning, though the methods are not limited to use in estate planning.
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Format: HTML | Date: Jan 2003 | Pages: 1
