Land was subdivided to form an acreage which was then gifted to family member. can the expenses incurred be applied against the deemed capital gain ?

[ayseleren18]

Thank you for choosing TurboTax,

As per CRA, the cost of capital property is its actual or deemed cost, depending on the type of property and how you acquired it. It also includes capital expenditures, such as the cost of additions and improvements to the property. You cannot add current expenses, such as maintenance and repair costs, to the cost base of a property.

You can add capital expenses to your adjusted cost base, however, you cannot add current expenses to your adjusted cost base.

Please visit our TurboTax article on Tax Rules for Disposing of Capital Property and CRA article on Current expenses or capital expenses