Adjusted Basis

Adjusted basis is tax basis after required increases or decreases, including specified purchases, distributions, fees, and other adjustments.

Why this matters to income investors

Changes to basis alter the taxable result from a sale or return-of-capital payment.

How to use adjusted basis in your research

Track the adjustments shown on broker and issuer tax records, including any return-of-capital amounts that reduce basis. Compare your records with the final tax forms before calculating a sale gain or loss.

This material is general education and information, not individualized investment, tax, or legal advice.