Pronunciation: [ɐd͡ʒˈʌstɪd bˈe͡ɪsɪs] (IPA) 
The spelling of the term "adjusted basis" is as follows: /əˈdʒʌstɪd ˈbeɪsɪs/. The first syllable is pronounced /ə/ as in "uh" and the second syllable is pronounced /ˈdʒʌstɪd/ as in "juh-stid". The third syllable is pronounced /ˈbeɪsɪs/ as in "bay-sis". This term is commonly used in accounting and finance to refer to the cost basis of an asset after accounting for any adjustments or improvements made to it.
The term "adjusted basis" is widely used in the world of finance and taxation. It refers to the value that is used to calculate the gain or loss when an asset is sold or disposed of. The adjusted basis is determined by starting with the original cost of the asset and making any necessary adjustments for certain factors that can affect its value.
The adjustments that are made to the original cost may include items such as improvements, additions, or deductions related to depreciation. For example, if an individual purchases a commercial property for $500,000 and then invests an additional $100,000 in renovations and improvements, the adjusted basis of the property would be $600,000.
The adjusted basis is essential in determining the amount of capital gain or loss that is incurred when the asset is sold. It helps to provide a more accurate representation of the economic value of the asset and ensures that taxes are assessed correctly. In general, the adjusted basis is used to calculate the gain or loss by subtracting the adjusted basis from the selling price of the asset.
Overall, the adjusted basis is a crucial concept for individuals, businesses, and tax authorities as it provides a fair and accurate evaluation of the financial impact of an asset's sale or disposition.
The word "adjusted" originated from the Latin word "ad" which means "to" or "towards" and "iustus" which means "just" or "fair". It entered the English language in the late 14th century and evolved to mean "made suitable" or "adapted".
The word "basis" derives from the Latin word "basis", which also means "base" or "foundation". It entered English in the early 17th century and refers to the underlying principle or fundamental part of something.
The term "adjusted basis" is commonly used in finance and accounting to refer to the original cost of an asset or investment, adjusted for certain factors such as depreciation, improvements, or other relevant changes. The combination of "adjusted" and "basis" conveys the idea of modifying or adapting the underlying value or cost to reflect the current or fair value.
