Which of the following decreases adjusted basis?
A)Amortization of bond premium.
B)A corporate distribution to a shareholder treated as a return of capital in which gain is recognized to the shareholder.
C)Depreciation.
D)Only a.and b.
E)a. ,b. ,and c.

Question

Quizplus · Accepted Answer

All three options, amortization of bond premium, a corporate distribution treated as a return of capital, and depreciation decrease adjusted basis. Amortization of bond premium reduces the bond’s cost basis, a corporate distribution treated as a return of capital reduces the shareholder’s cost basis, and depreciation reduces the basis of the asset being depreciated.

Which of the Following Decreases Adjusted Basis