Original cost, adjusted cost, and gains? Where do I start to know what my profit on the sale of my home was?
Original cost is the amount paid either for the home alone or the land plus amounts to construct it. Adjusted cost is the original cost minus any deductions such as casualty losses or additions. In general, terms, gain at home would be the sale price minus the original cost. However, your gain/loss for tax purposes is the sale price minus the adjusted cost of the property.