What does adjusted basis mean?

adjusted basis meaning in Legal Dictionary

n. in accounting, the initial price of an asset adjusted for prices of improvements, depreciation, damage also events which could have impacted its value over ownership. This is really important in calculating money gains for income-tax purposes since the adjusted foundation is usually greater than the first cost and certainly will lower money gains fees.

adjusted basis meaning in Law Dictionary

the bottom cost accustomed figure out money gains or losings on a good investment, generally speaking including a deduction for commissions during buy or sale, with adjustments for any STOCK SPLITS that'll have happened.