valuation

basis

For tax purposes, the starting value of a property used to calculate gain or loss when it is sold, usually the original purchase price plus certain acquisition costs. Basis is increased by capital improvements and decreased by depreciation taken, producing the adjusted basis. Gain is generally the amount realized minus the adjusted basis.

Exam tip: Repairs do not increase basis; capital improvements do. Gain equals sale price minus selling costs minus adjusted basis.
Example: An investor buys a property for $300,000 and adds a $40,000 addition; her adjusted basis is $340,000 before depreciation.

1. The Equal Credit Opportunity Act prohibits lenders from discriminating on the basis of all of the following EXCEPT:

Answer & explanation

Answer: A. ECOA protects race, color, religion, national origin, sex, marital status, age and receipt of public assistance. Creditworthiness factors such as credit history may be considered.

Related terms & state variants

1031 exchange adjusted basis capital gain depreciation

Sources

Source verification pending. Confirm current requirements with your state regulator.

Last verified: 2026-10-23