|
Carlsbad Investment Property
Real Estate Investing - "Basis" Explained
Author: Mark Walters
Our complex IRS code requires that your, as a real estate investor, accurately calculate your "basis" in investment property when reporting a gain or loss on a tax return.
Your monetary gain or loss when you sell investment property is determined by comparing the sale price to the adjusted basis in the property.
Your original basis is determined by the way the property was acquired -- whether through purchase, in trade, or received as a gift or inheritance.
We will briefly cover how you determine basis in an investment property you have purchased.
The original basis is determined by adjustments in the total cost of the purchase.
The adjustments include depreciation, or addit...
[ Read Full Article Here ] |