---
title: Adjusted Basis
description: Adjusted basis is the original purchase price of an asset plus its acquisition costs plus any capital improvements less the cumulative depreciation deductions.
---

[Realized 1031 Glossary of Terms ](https://www.realized1031.com/glossary)

# [Adjusted Basis](https://www.realized1031.com/glossary/adjusted-basis)

 Written by [The Realized Team](https://www.realized1031.com/glossary/author/the-realized-team) | Jun 20, 2022 5:00:00 AM

Adjusted basis is the original purchase price of an asset plus its acquisition costs plus any capital improvements less the cumulative [depreciation](https://www.realized1031.com/glossary/depreciation) deductions the owner has claimed during the time of ownership less any previously [deferred capital gains](https://www.realized1031.com/glossary/deferred-gain).

For example, if an investor purchases a property for $1,500,000, incurs $10,000 in closing costs, makes $50,000 in capital improvements and claims $400,000 of depreciation over the holding period, and had $200,000 of previously deferred gains, their adjusted basis would be $960,000 ($1,500,000 plus $10,000 plus $50,000 less $400,000 less $200,000).

[View full post](https://www.realized1031.com/glossary/adjusted-basis)

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