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Commercial property adjusted basis calculator

How do I estimate my property's adjusted basis?

Start with the purchase price, add eligible capitalized acquisition costs, improvements, and other basis increases, then subtract depreciation and other basis reductions. Use this worksheet to organize a planning estimate before reviewing the figures with your CPA.

For commercial property acquired by purchase under U.S. federal tax rules. Use amounts for the same property and ownership share throughout. This tool estimates aggregate property basis; it does not allocate basis among assets or calculate depreciation, sale proceeds, or taxes.

Prepared by Seth Woods · Updated October 21, 2026

Build your basis estimate

All amounts are in U.S. dollars. Purchase price is required. Other blank fields count as zero, so fill in every adjustment that applies. Entries stay in this browser tab and are not submitted or saved.

Enter the total purchase price, including the financed portion. This is not your down payment.

Enter eligible purchase costs confirmed by your CPA. Exclude loan fees and costs already included in the purchase price.

Enter qualifying capitalized improvements, not repairs already deducted as expenses.

Enter other increases your CPA has confirmed. Avoid counting any item twice.

Use your depreciation schedule through the calculation date, including depreciation you were entitled to deduct.

Enter other CPA-confirmed reductions, such as applicable casualty adjustments.

Enter your figures to see an estimate.

What is the adjusted basis formula?

Adjusted basis = purchase price + capitalized acquisition costs + capital improvements + other increases − depreciation allowed or allowable − other reductions.

Hypothetical example: a $1,000,000 purchase plus $20,000 of eligible acquisition costs and $150,000 of improvements, less $200,000 of depreciation, produces an estimated adjusted basis of $970,000. Other adjustments are zero in this example.

Sources: IRS Topic 703, Basis of Assets and IRS Publication 551, Basis of Assets. Basis generally begins with cost and changes for qualifying increases and reductions.

Which records should I gather?

Include land in the aggregate purchase basis, but do not depreciate land. Use the depreciation recorded or allowable for the depreciable assets. Mortgage balances and debt repayments are not inputs in this basis worksheet.

When does this simple worksheet need a CPA's help?

Inherited or gifted property, tax-deferred exchanges, ownership transfers, partial dispositions, casualty events, and complex asset allocations can require different starting points or adjustments. This purchase-based worksheet does not model those rules. Ask your CPA to establish the correct basis and treatment for those situations.

Adjusted basis questions

Is adjusted basis my equity or cash at closing?

No. This result is a tax basis estimate. Your debt payoff and selling expenses belong in a separate proceeds estimate. Read how to estimate what you keep after selling.

What if I did not claim depreciation?

Do not assume the reduction is zero. Basis generally reflects depreciation allowed or allowable. Have your CPA check the applicable amount and any corrections needed.

Does this calculate capital gains tax?

No. The calculator does not determine taxable gain, depreciation recapture, tax rates, or state taxes. It helps you organize one input for a professional tax projection.

What if reductions exceed my starting basis and additions?

The calculator asks you to review the entries instead of returning a negative estimate. Check for duplicates, missing increases, or an issue that requires professional review.

Start with what the sale needs to accomplish

A basis estimate is one part of the decision. Consider your income needs, responsibilities, and next chapter alongside the numbers.

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