WHAT DOES ADJUSTED BASIS FOR ASSET MEAN ? HOW TO FILL THIS BOX?

[fengkai16]

When I report my rental and bank accounts interests paid tax Canada , TurboTax has " Adjusted basis for Asset" page,  asking to "enter change the adjusted basis of investment assets that generate this foreign income and renter your basis asset basis", below has two boxes to be filled.-"adjusted Asset Basis of investment Assets; - Total adjusted asset basis.  how do I fill ? where do I get this information?

[pk · Accepted solution]

generally adjusted basis  ( for gain computation  of real-estate or physical assets) is  acqusition basis + cost of any changes/improvements less any allowable depreciation ).

For financial assets (  bank accounts ) -- it is really not applicable  except for extreme  cases like devaluation.

For other assets ( stocks bonds etc. ) again unlikely  except for cases when shares / bonds are devalued -- such as negative split  etc.

That is all I can think of -- normally does not apply

[Aloefan1]

Why is adjusted basis required for a rental property? The property has not been sold, so there is no final valuation -- and no gain computation?