Depreciation and Calculating Cost Basis

[Shane P.]

Hello, 

I purchased a new rental property in July of 2017. There is a credit on my Closing Disclosure for "Tax Adjustment Unpaid by Seller".

How does this credit effect the Property Cost Basis ( for Depreciation)?

I've read that this credit decreases the Cost basis...if yes can someone please explain why?

Thank you for your time.