Adjusted Basis Definition and Legal Meaning

On this page, you'll find the legal definition and meaning of Adjusted Basis, written in plain English, along with examples of how it is used.

What is Adjusted Basis?

n. during the ownership, an asset loses or gains values because of costs of improvements, damage, devaluation, etc. The original cost is therefore, adjusted for all these losses or gains while calculating the worth, and is an adjusted basis. It is used in assessing the worth of a property for such purposes as auctioning, calculation of tax and rebates, etc.