Tax structure where the rate of tax increases as the tax base increases Equals the tax liability divided by the taxable income Progressive tax rate The Average Rate Identify the type of tax term defined by each phrase Not All Terms Are Used. Realized gain or loss Amount Realized Initial Basis Adjusted Basis Capital Additions Capital Recoveries Recovery of basis doctrine Recognized gain or loss Capitalization of Interest Uniform Capitalization Rules N The cost of the property: purchase cost, the amount paid for the property in cash or the FMV of other property given in the exchange Choose The deductions for casualty losses, cost recovery, and depreciation, reduce the basis Choose. The difference between the amount realized and the adjusted basis when a sale or exchange occurs. Choose Taxpayers are allowed to recover the basis of an asset without being taxed because such amounts are a return of capital that the taxpayer has invested in the property Choose The amount of gain or loss actually reported on the tax return Choose The sum of any money received, the FMV of all other property received, and any debt assumed by the buyer Choose Expenditures that add to the value or prolong the life of property or adapt the property to a new or different use Choose