Original Purchase Price

Definition

The price at which a property was originally purchased, used as a baseline for calculating appreciation and capital gains. It's the number that makes homeowners cry when comparing to today's market.

Example Usage

We bought this property for $200,000 ten years ago; the original purchase price was a steal by today's standards.

Origin

Descriptive accounting term; 'original' indicates the initial price at acquisition.

Fun Fact

Capital gains taxes are based on the original purchase price as the 'cost basis,' making historical documentation critically important.

Source: Real estate accounting and tax standards

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