What is the year of acquisition?
The taxpayer’s acquisition date is
the date on which the taxpayer last acquired or reacquired the property, or is
deemed to have last acquired or reacquired it.
You’re considered to have
acquired a property whether through purchase, gift or inheritance. Deemed
acquisition is an expression used when you are considered to have acquired
property, even though you didn’t actually buy it.
Disposition date
The date of disposition is the
day you sold, got rid of or lost the asset. The disposition date for stock and
bond transactions through the stock market is considered to be the settlement
date.
Proceeds of Disposition
Your proceeds of disposition
means the selling price of the property disposed of. The proceeds of
disposition may also be compensation received for property that was
expropriated, destroyed, damaged, or stolen.
Adjusted Cost Base
The Adjusted Cost Base is usually
equal to the acquisition cost of the property, plus the expenses incurred to acquire
the property and the cost of any additions to it. Examples of expenses incurred
to acquire property include legal fees, surveyor's fees, and assessment or
brokerage fees.
Outlays and Expenses
These
are expenses that you incurred to sell a capital property. You can deduct
outlays and expenses from your proceeds of disposition when calculating your
capital gain or capital loss. You cannot reduce your other income by claiming a
deduction for these outlays and expenses. These types of expenses include
fixing-up expenses, finder fees, commissions, broker fees, surveyor fees, legal
fees, transfer taxes, and advertising costs.
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