As per our TurboTax article: Proceeds of Disposition
Definition of “Proceeds of Disposition”
“Disposition” refers to when you dispose of or get rid of a property. In most cases, the proceeds of disposition is the amount you received for the property.
As per our TurboTax article: Calculating Adjusted Cost Base (see example in article)
Adjusted Cost Base
The ACB of an asset is the price you paid to acquire it. Additionally, you can usually include capital costs such as the cost of additions or improvements and legal fees as part of an asset’s ACB. The capital costs usually have a long-lasting effect such as adding a deck attached to an existing house. Some repairs are considered capital costs if they improve the property beyond the maintenance of the original use or value such as replacing a carpeted floor with a hardwood floor. If you have to repair the property anyway, the expenses are considered current costs. If these repairs are a condition for sale or to increase the price, then the expenses are considered capital costs.
For more information please see this TurboTax article: Changing Your Principal Residence
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