Adjusted Basis
When there is a sale of property, it may be necessary to make various adjustments to the basis so that an accurate gain or loss can be determined. Some of the many possible additions and subtractions from basis:
INCREASES TO BASIS:
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Improvements made to the property after purchase
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Legal fees paid to protect property title
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Zoning costs
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Escrow costs
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Recapture of some credits
DECREASES TO BASIS:
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Depreciation, amortization, depletion, etc.
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Section 179 deductions
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Casualties
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Easements
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Energy, investment, and rehabilitation credits