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Let me amend my answer to note that improvements are allowable adjustments to cost basis. Improvements are permanent attachments to the real property that add value or extend the useful life of the property. Typical improvements would be a new roof, new air conditioner or hot water heater, new flooring, kitchen remodeling, and so on. If some of your annual assessment include improvements and you have statements to prove it, you can include the cost of improvements as an adjustment cost basis.