### Question
How is the "depreciation adjustments" defined?


### Answer
The term **depreciation adjustments** is defined in *26 U.S.C. § 865* as follows -

> adjustments reflected in the adjusted basis of any property on account of depreciation deductions (whether allowed with respect to such property or other property and whether allowed to the taxpayer or to any other person)

#### Citation:
  - *26 U.S.C. § 865*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter N-Tax Based on Income From Sources Within or Without the United States > PART I-SOURCE RULES AND OTHER GENERAL RULES RELATING TO FOREIGN INCOME**

