The proceeds of disposition is usually the amount you received or will receive for your property. In most cases, it refers to the sale price of the property. This could also include compensation you received for property that has been destroyed, expropriated, or stolen.

Adjusted cost base (ACB) is usually the cost of a property plus any expenses to acquire it, such as commissions and legal fees. Adjustments can also include items such as capital expenditures. 

So is the ACB the cost of the property when the seller initially purchased the property they have now sold?

Yes, the Adjusted Cost Base (ACB)—this is usually the cost of a property plus any expenses to acquire it, such as commissions and legal fees. The cost of a capital property is its actual or deemed cost, depending on the type of property and how you acquired it.

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