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Adjusted Basis

This is a base price that is used to determine the gain or loss on an asset when it is sold. To calculate your adjusted basis: begin with your original cost; add the cost of improvements; subtract deductions related to such things as depreciation and depletion. Your adjusted basis with regards to stock or mutual funds is the cost of shares, plus any brokerage commissions or load fees, and minus any capital payouts returns.

See also: Basis