Limited Time Offer! Schedule your FREE business coaching session and scale your business smarter & easier! Reserve My Spot

Success! Your account information has been updated.

close icon

This episode is a business coaching course that explains what adjusted basis means in real estate.

Results-Focused Training, Tools, and Workshops from Expert Business Coaches.

Featured Coaching Excerpt - Notes & Transcript, Part 1
  • Adjusted Basis: The original cost basis of a property plus capital improvements, less total accumulated cost recovery deductions, and partial sales taken during the holding period.
  • Lesson Nugget: Adjusted basis is the value of your building after improvements are added and any depreciation you have taken is subtracted.


an for real estate

CLAY CLARK: We are here on Thrive15.com,

an in sunny San Diego with Michael "There-is-no-real-estate-topic-too-obscure" Burer. Talking about-- I mean this is a topic I know you're passionate about, it's one that's close to your heart. It's adjusted basis.

MICHAEL BURER: Adjusted basis.

CLAY CLARK: Now, the original cost basis of a property plus capital improvements, less total accumulated cost recovery deductions and partial sales taken during the holding period, that's what that means. I don't even know what that means. I just said those words, I don't know what that-- it was just like a weird out of body experience. Walk me through what-- give us an example, that the Thrivers can handle. What does this mean?

MICHAEL BURER: So that's a lot of words, but it's pretty simple. You buy a building for $100,000, maybe spend another $20,000 on tenant improvements, maybe $10,000, you put some new air conditioning in. Then your adjusted basis is going to be $130,000, so you add all that together.

CLAY CLARK: So it's whatever you bought it for plus all the stuff you put into it?

MICHAEL BURER: Yes, less any depreciation that you take.

CLAY CLARK: OK. Let's say I'm a Thriver, and I've decided-- I talked to one of the Thrivers the other day. And this guy's decided he's going to flip houses. So he bought a house, I don't remember the total, let's just say he bought it for $100,000.


CLAY CLARK: And then he-- any of the money he puts in to fix it, and adjust it-- or fix it, and modify it, and improve it. All that together.

MICHAEL BURER: Once he adds all that up, that's his adjusted basis.

CLAY CLARK: And how often do you talk about this kind of term in real estate?

MICHAEL BURER: Well, you talk about it maybe when you're thinking about selling it. What's your profit going to be? You would use your adjusted basis, typically, to see what the net profits would be. Could also be a tax term, adjusted basis, if you're considering your depreciation. How much gain from a tax standpoint there would be.

CLAY CLARK: Michael, I appreciate you being here. And really if I could write it across the sky in calligraphy, it wouldn't adequately express how much I appreciate you being here.



Are you looking for


Let's Get Started. Try Us for $1
Login Try Us for $1
search icon
Feeling Stuck? Ask our Mentors any Business Question.

Ready to Thrive? Log In to your Account.

Login with your email
Please enter your email.
Please enter your password.
Login with social accounts
Signup | Forgot password?

Forgot Password?

Send us your email address, and our team of elite minds will get right on it.

Sign up to Thrive15

and get unlimited access to 1,700+ courses
  • Full Access

    $ 49 /mo
    Try it free
    • World-class mentorship
    • 24/7 access to all videos
    • Practical business tools
  • save $98 on an annual membership


    $ 41 /mo
    Save $98!
    Try it free
    *Billed as one payment of $490.
    • World-class mentorship
    • 24/7 access to all videos
    • Practical business tools
  • Thrive15 group memberships

    Team Membership

    Need to train five or more people?
    Learn More
Graduation Cap Icon College student? Sign up for $19/month. Learn More

Contact Us

Give us a call or send us an email and we will be in touch as soon as possible, or sooner than as soon as possible.

Email: info@thrive15.com
Phone: 918-340-6978
Prefer communication by smoke signals?

Ask us a question!

We want to answer you, no strings attached. How can we reach you?

Please enter your name.
Please enter your phone number.
Please enter your message.


Let us know what's going on.

Please enter your subject.
Please enter your message.
Even more feedback