Which of the following is included in the calculation of an asset's value for tax purposes?

The calculation of an asset's value for tax purposes typically includes the initial purchase price along with any capital improvements made to the property. This approach aligns with tax guidelines that view both the acquisition cost and enhancements to the property as integral to determining its total value. Capital improvements, such as renovations or additions, increase the asset’s worth in the eyes of tax authorities, as they contribute to the overall utility and longevity of the asset.

Inclusion of these improvements helps provide a more accurate representation of the property’s value, which is necessary for determining property taxes. Other factors such as market conditions and neighborhood value may influence the market valuation but are generally not factored into the tax assessment of an asset's value. Similarly, insurance expenses and depreciation costs relate to the operational side of asset management rather than the asset's inherent value for tax purposes.