Asset Adjusted Basis Calculator

Formula

The formula to calculate the Asset Adjusted Basis (AAB) is:

\[ \text{AAB} = \text{AC} - \text{AD} + \text{AI} \]

Where:

$ \text{AAB} $ is the Asset Adjusted Basis ($)
$ \text{AC} $ is the Asset Cost ($)
$ \text{AD} $ is the Accumulated Depreciation ($)
$ \text{AI} $ is the Asset Improvements ($)

Definitions

Asset Adjusted Basis: The original cost of an asset, including any improvements made to it, adjusted for factors such as depreciation or amortization. This value is used to calculate the taxable gain or loss when the asset is sold.
Asset Cost (AC): The initial purchase price of the asset.
Accumulated Depreciation (AD): The total depreciation expense that has been recorded for the asset over its useful life.
Asset Improvements (AI): The cost of any improvements made to the asset that increase its value.

Example

Let's say the asset cost is $50,000, the accumulated depreciation is $10,000, and the asset improvements are $5,000. Using the formula:

\[ \text{AAB} = 50000 - 10000 + 5000 \]

We get:

\[ \text{AAB} = 45000 \]

So, the Asset Adjusted Basis is $45,000.

Extended information about "Asset-Adjusted-Basis-Calculator"

Adjusted Basis Calculation for Property

Definition: The adjusted basis of a property is the original cost of the property adjusted for various factors such as improvements, depreciation, and other adjustments.

Formula: $ \text{Adjusted Basis} = \text{Original Cost} + \text{Improvements} - \text{Depreciation} $

Adjusted Basis: Adjusted cost of the property
Original Cost: Initial purchase price of the property
Improvements: Cost of improvements made to the property
Depreciation: Accumulated depreciation on the property

Example: $ \text{Adjusted Basis} = 200000 + 50000 - 30000 $

Original Cost: $200,000
Improvements: $50,000
Depreciation: $30,000

Formula for Adjusted Basis

Definition: The adjusted basis is used to determine the gain or loss on the sale of an asset.

Formula: $ \text{Adjusted Basis} = \text{Purchase Price} + \text{Capital Improvements} - \text{Accumulated Depreciation} $

Adjusted Basis: Adjusted cost of the asset
Purchase Price: Initial purchase price of the asset
Capital Improvements: Cost of improvements made to the asset
Accumulated Depreciation: Total depreciation taken on the asset

Example: $ \text{Adjusted Basis} = 150000 + 20000 - 10000 $

Purchase Price: $150,000
Capital Improvements: $20,000
Accumulated Depreciation: $10,000

Real Estate Adjusted Basis Calculator

Definition: This calculator estimates the adjusted basis of a real estate property.

Formula: $ \text{Adjusted Basis} = \text{Purchase Price} + \text{Improvements} - \text{Depreciation} $

Adjusted Basis: Adjusted cost of the real estate property
Purchase Price: Initial purchase price of the property
Improvements: Cost of improvements made to the property
Depreciation: Accumulated depreciation on the property

Example: $ \text{Adjusted Basis} = 300000 + 40000 - 20000 $

Purchase Price: $300,000
Improvements: $40,000
Depreciation: $20,000

Adjusted Basis of Property Calculator

Definition: This calculator helps determine the adjusted basis of a property for tax purposes.

Formula: $ \text{Adjusted Basis} = \text{Cost Basis} + \text{Capital Improvements} - \text{Depreciation} $

Adjusted Basis: Adjusted cost of the property
Cost Basis: Initial cost basis of the property
Capital Improvements: Cost of improvements made to the property
Depreciation: Accumulated depreciation on the property

Example: $ \text{Adjusted Basis} = 250000 + 30000 - 15000 $

Cost Basis: $250,000
Capital Improvements: $30,000
Depreciation: $15,000

How to Calculate Adjusted Tax Basis

Definition: The adjusted tax basis is used to determine the taxable gain or loss on the sale of an asset.

Formula: $ \text{Adjusted Tax Basis} = \text{Original Cost} + \text{Improvements} - \text{Depreciation} $

Adjusted Tax Basis: Adjusted cost of the asset for tax purposes
Original Cost: Initial purchase price of the asset
Improvements: Cost of improvements made to the asset
Depreciation: Accumulated depreciation on the asset

Example: $ \text{Adjusted Tax Basis} = 180000 + 25000 - 10000 $

Original Cost: $180,000
Improvements: $25,000
Depreciation: $10,000