Example: Collins buys a lot for $100,000. She erects a retail facility for $600,000, then depreciates the improvements for tax purposes at the rate of $15,000 per year. After 3 years her adjusted tax basis is $655,000 [$100,000 + $600,000 – (3 × $15,000)].
Dictionary of Real Estate Terms for: adjusted tax basis
adjusted tax basis