The State Basis Calculator tracks an adjusted tax basis by starting with original cost, adding capital improvements or additional contributions, and subtracting depreciation, distributions, or other basis reductions. It also compares that adjusted basis with a sale or disposition value to estimate a preliminary gain or loss.
The tool can help organize basis records for investments, property, or business interests before a state tax calculation. Basis rules differ by asset and jurisdiction, so the entered additions and reductions should come from appropriate records and applicable guidance.
Use documented acquisition cost or the applicable starting basis.
Include eligible improvements, fees, or additional contributions.
Enter depreciation, returned capital, distributions, or other recognized reductions.
Use the sale proceeds or value being compared with basis.
The difference between value and adjusted basis is shown as a preliminary result.
Adjusted basis = Original basis + Basis additions − Basis reductions
Preliminary gain or loss = Disposition value − Adjusted basis
AB = O + A − R Gain/Loss = V − ABThe calculator does not determine which costs qualify, apply allocation rules, or separate state and federal basis adjustments.
The main result is the adjusted basis after the entered increases and decreases.
A negative calculated basis is prevented because many applications require basis to be no less than zero; verify specialized rules separately.
Given: $100,000 original basis, $15,000 in additions, $20,000 in reductions, and a $130,000 sale value.
Calculation: Adjusted basis = $100,000 + $15,000 − $20,000 = $95,000. Preliminary gain = $130,000 − $95,000 = $35,000.
Result: Adjusted basis is $95,000 and the preliminary gain is $35,000.
Examples may include eligible capital improvements, acquisition costs, or additional contributions, depending on the asset.
Depreciation, return of capital, certain distributions, and casualty adjustments can reduce basis.
The calculator floors it at zero. Specialized tax rules may require additional treatment when reductions exceed basis.
Not always. Selling costs, exclusions, recapture, and state adjustments may change taxable gain.
Only when the applicable basis rule calls for it, such as certain inherited or gifted property situations.