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Unadjusted Basis

What is 'Unadjusted Basis'

A basis used for depreciation purposes. Unadjusted basis uses the original cost of property or equipment without regard to salvage value.

Explaining 'Unadjusted Basis'

This method of calculating depreciation is used for accelerated cost recovery systems (ACRS) and modified accelerated cost recovery systems (MACRS).


Further Reading


The early stages of financial distress
link.springer.com [PDF]
… Change in firm performance is determined on an unadjusted basis and after controlling for other factors … 126 Journal of Economics and Finance 9 Volume 23 9 Number 2 ~ Summer 1999 optimal management decisions unrelated to the effects of financial or economic distress …

Comparative research productivity measures for economics departmentsComparative research productivity measures for economics departments
www.tandfonline.com [PDF]
… Change in firm performance is determined on an unadjusted basis and after controlling for other factors … 126 Journal of Economics and Finance 9 Volume 23 9 Number 2 ~ Summer 1999 optimal management decisions unrelated to the effects of financial or economic distress …

Returns from investing in Australian equity superannuation funds, 1991–1999Returns from investing in Australian equity superannuation funds, 1991–1999
www.tandfonline.com [PDF]
… Change in firm performance is determined on an unadjusted basis and after controlling for other factors … 126 Journal of Economics and Finance 9 Volume 23 9 Number 2 ~ Summer 1999 optimal management decisions unrelated to the effects of financial or economic distress …

Economic burden of selected adverse events in patients aged≥ 65 years with metastatic renal cell carcinomaEconomic burden of selected adverse events in patients aged≥ 65 years with metastatic renal cell carcinoma
www.tandfonline.com [PDF]
… Change in firm performance is determined on an unadjusted basis and after controlling for other factors … 126 Journal of Economics and Finance 9 Volume 23 9 Number 2 ~ Summer 1999 optimal management decisions unrelated to the effects of financial or economic distress …

The financial market effects of the Federal Reserve's large-scale asset purchasesThe financial market effects of the Federal Reserve's large-scale asset purchases
www.ijcb.org [PDF]
… Change in firm performance is determined on an unadjusted basis and after controlling for other factors … 126 Journal of Economics and Finance 9 Volume 23 9 Number 2 ~ Summer 1999 optimal management decisions unrelated to the effects of financial or economic distress …

The information content of corporate offerings of seasoned securities: An empirical analysisThe information content of corporate offerings of seasoned securities: An empirical analysis
www.jstor.org [PDF]
… Change in firm performance is determined on an unadjusted basis and after controlling for other factors … 126 Journal of Economics and Finance 9 Volume 23 9 Number 2 ~ Summer 1999 optimal management decisions unrelated to the effects of financial or economic distress …



Q&A About Unadjusted Basis


What is unadjusted basis?

Unadjusted basis is a depreciation method that uses the original cost of property or equipment without regard to salvage value.

What does it not include?

It does not include any land value or sales tax paid on purchase.

How is unadjusted basis used in accelerated cost recovery systems (ACRS) and modified accelerated cost recovery systems (MACRS)?

Unadjusted basis is used in ACRS and MACRS for calculating depreciation.

Is there anything else we should know about calculating our adjusted bases in investments such as stocks, bonds, mutual funds, etc.?

Yes, if you have owned these types of investments for more than one year before selling them, then they are considered long term gains or losses which are taxed at lower rates than short term gains or losses which are taxed at higher rates.

Why would you want to know your unadjusted basis in something like a stock investment?

Knowing your unadjusted basis will help you determine when it makes sense to sell an investment and realize a gain or loss on your taxes, as well as how much profit (or loss) was realized when selling an investment.

What does unadjusted basis use for its calculation?

Unadjusted basis uses the original cost of property or equipment without regard to salvage value.

If I have owned my home longer than one year before selling it what type of gain/loss am I looking at reporting on my taxes if I sell my home?

If you have owned your home longer than one year before selling it then any profit (or loss) made on its sale will be considered a long term gain (

Why do you need to know about these two types?

You need to know about these two types because they both use unadjusted basis for their calculations.

How do you calculate this amount for real estate transactions?

You add up all costs and subtract from that total all depreciation taken over time to arrive at an adjusted basis.

What are the two types of accelerated cost recovery systems (ACRS) and modified accelerated cost recovery systems (MACRS)?

The two types are ACRS and MACRS.

What is the definition of Unadjusted Basis?

The unadjusted basis is the original cost of a property plus capital improvements minus depreciation.

What does the unadjusted basis include?

The unadjusted basis includes the original cost of a property plus capital improvements minus depreciation.

How do you calculate this amount for personal property transactions?

You add up all costs and subtract from that total all depreciation taken over time to arrive at an adjusted basis.