Your adjusted basis is what you originally paid plus closing costs at purchase, plus capital improvements made during ownership, minus any depreciation taken on investment property. The difference between your net sale price and adjusted basis determines your taxable capital gain. Higher basis means lower taxes. Maintain documentation for every improvement - missing records reduce your provable basis and increase your tax bill.
From the seller playbook: Capital Gains Tax Planning for NYC Property Sales
This is general information, not legal, tax or accounting advice. Every situation is different. Talk to a licensed attorney, accountant or tax professional before you act.
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