The success or failure of active strategy is always measured on a net-of-cost, risk-adjusted basis against its benchmark.

FORBES: Passive Investing Doesn't Exist, But So What?

If your property is personal-use property or is not completely destroyed, the amount of your casualty loss is the lesser of your adjusted basis (generally, the cost, adjusted for improvements or depreciation) or the decrease in fair market value of your property.

FORBES: Taxes From A To Z (2013): D Is For Disaster Relief

"Very few banks have the ability to determine whether the cost basis provided by a client has been correctly adjusted in the past, " assert the bankers in their comments.

FORBES: Basis In Truth