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Basis
The initial value of an asset for tax purposes, usually the purchase price, used to calculate gains or losses when the asset is sold.
Recognized Gain
The profit realized from the sale or exchange of an asset over its adjusted basis.
Adjusted Basis
The net cost of an asset after adjusting for various tax-related items, such as improvements and sales.
Fair Market Value
The estimated price an asset would fetch in the marketplace, subject to the willingness of both buyer and seller.
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