Real Estate Glossary

Basis

/glossary/basis
For tax purposes, your basis in a property is what you paid for it plus capital improvements minus depreciation. When you sell, the difference between sale price and basis is your capital gain (or loss). Inherited homes get a 'stepped-up basis' to date-of-death value.

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Reviewed by John Quigley · Founder, BuyHousesInCash · Last updated May 2026

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