the amount paid for property, increased by capital improvements and decreased by depreciation.
An asset's original purchase price plus any allowable expenses (according to the Income Tax Act) related to the asset's purchase. To determine the capital gain/loss, subtract the asset's ACB, plus all allowable costs to sell or dispose of the asset, from the selling price.
An income tax term relating to capital property, generally meaning the amount from which capital gains and losses are measured. See paragraph 54(a) of the Income Tax Act.
The original purchase price of an asset plus any acquisition costs such as commissions.
The cost of a capital property for tax purposes. The original purchase price (cost) plus an adjustment for all subsequent related expenses, e.g. if investment property this would include any debt servicing (interest), property taxes, insurance etc. that have not been deducted for tax purposes.
For the purposes of determining capital gains or losses. The acquisition cost of a property or chattel, plus the cost of any improvements to the property.
When you sell a capital property, your capital gain or loss for income tax purposes is calculated as your proceeds of disposition less your adjusted cost base (ACB) and any outlays or expenses relating to the disposition. In the case of shares acquired on the open market, your ACB is normally the cost of the shares plus any brokerage fees relating to the acquisition. In the case where shares have been acquired through the exercise of stock options, the ACB is adjusted by the taxable benefit associated with the exercise. The ACB per share will be affected by stock splits and stock consolidations. In addition, where identical properties (such as shares of a particular class in a public company) are held, the ACB per share is determined as the average over all those properties. The ACB is also affected by any capital returned to an investor.
The acquisition price of a property with adjustments for deductions and additions pursuant to the Income Tax Act most often used to determine capital gains arising from the sale of the property.