5.20 How To Find Adjusted Basis
After determining the unadjusted cost basis for property (5.16–5.19), you may have to increase it or decrease it to find your adjusted basis, which is the amount used to figure your gain or loss on a sale (5.13).
- All permanent improvements and additions to the property and other capital costs. Increase basis for capital improvements such as adding a room or a fence, putting in new plumbing or wiring, and paving a driveway. Also include capital costs such as the cost of extending utility service lines, assessments for local improvements such as streets, sidewalks, or water connections, and repairing your property after a casualty (for example, repair ...
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