The adjusted basis of purchased property is
A)Equal to the fair market value of the property at the time of purchase
B)Defined as the book value of the property
C)Reduced by any debt owed on the property before any gain or loss is computed
D)Generally its cost, plus or minus certain adjustments

Question

Quizplus · Accepted Answer

The adjusted basis of purchased property is generally its cost, plus or minus certain adjustments. These adjustments may include improvements, depreciation, and casualty losses. The fair market value at the time of purchase, book value, and any debt owed on the property are not necessarily factors in determining the adjusted basis.

The Adjusted Basis of Purchased Property Is