An adjusted basis, or adjusted tax basis, refers to the original cost or other basis of property, reduced by depreciation deductions and increased by capital expenditures. It serves as the base amount from which to measure gains and losses for tax purposes.
In accounting, AIA can refer to either the Association of International Accountants or the Annual Investment Allowance, each holding distinct significance in the field.
Understanding the multifaceted term 'capitalize' and the concept of capitalization, especially within various business and financial contexts. This includes asset valuation, financing capital expenditures, accounting procedures, and making economically advantageous decisions.
An expense is a business cost incurred in operating and maintaining property, used in profit-directed business activities and calculated as the cost of goods and services used. Expenses can be currently deductible costs, distinct from capital expenditures that must be depreciated or amortized over the property's useful life.
Any permanent, fixed development of land or buildings through expenditure of money or labor that more than merely replaces, repairs, or restores to original condition, and tends to increase the value of the property.
A section of the Internal Revenue Code of 1986 (IRC) that allows the cost of capital improvements for qualifying personal property to be deducted in the year of acquisition rather than being recovered over time through depreciation.
