Tax Adjusted Basis, also known as Tax Cost Basis, is a term used by investors to describe the value of an asset that has been adjusted for any tax liabilities associated with its purchase or sale. This calculation helps determine the amount of capital gains or losses incurred from the asset’s sale. Essentially, it’s a way of measuring the actual return on an investment after taxes have been subtracted. Tax Adjusted Basis offers investors a more realistic understanding of how much money they are making, or losing, when engaging in certain transactions. This can play an important role in helping investors make smart decisions about their investments.