Determination of Basis Original basis(Cost) t plus additions (eag Capital improvements) less reductions (ieny Depreciation) =u = Adjusted basis
Determination Of Basis Original basis (Cost) + plus additions (i.e., Capital improvements) - less reductions (i.e., Depreciation) = Adjusted basis
Recognized Gain Or LOSs The amount of recognized gain or loss on disposition may be less than the realized gain or loss due to special statutory provsions Like-kind exchange rules o Involuntary conversions rules
Recognized Gain Or Loss • The amount of recognized gain or loss on disposition may be less than the realized gain or loss due to special statutory provisions • Like-kind exchange rules • Involuntary conversions rules
Basis considerations In most cases the cost off acquired property is the basis
Basis Considerations In most cases the cost of acquired property is the basis
Basis considerations Original cost basis includes ash FMV of other property ●Debt Transactional cost Uniform capitalization rules are mandated for inventory
Basis Considerations • Original cost basis includes • Cash • FMV of other property • Debt • Transactional cost • Uniform capitalization rules are mandated for inventory