Adjusted Cost Base - ACB

AAA

DEFINITION of 'Adjusted Cost Base - ACB'

An income tax term that refers to the change in an asset's book value resulting from improvements, new purchases, sales, payouts or other factors. An adjusted cost base can be calculated on a single or a per unit basis.

INVESTOPEDIA EXPLAINS 'Adjusted Cost Base - ACB'

The book value can be adjusted because of a change or improvement made to the asset. The new adjusted cost base is then used to compute the gain or loss when it is sold. In some jurisdictions, the adjusted cost base must be used as the cost of the asset for capital gains purposes.

RELATED TERMS
  1. Capital Gain

    1. An increase in the value of a capital asset (investment or ...
  2. Capital Gains Distribution

    The payment of proceeds prompted by a fund manager's liquidation ...
  3. Capital Loss

    The loss incurred when a capital asset (investment or real estate) ...
  4. Book Value

    1. The value at which an asset is carried on a balance sheet. ...
  5. Tax Gain/Loss Harvesting

    Selling securities at a loss to offset a capital gains tax liability. ...
  6. Capital Gains Tax

    A type of tax levied on capital gains incurred by individuals ...
Related Articles
  1. 10 Steps To Tax Preparation
    Taxes

    10 Steps To Tax Preparation

  2. Tax Tips For The Individual Investor
    Retirement

    Tax Tips For The Individual Investor

  3. Capital Gains Tax 101
    Taxes

    Capital Gains Tax 101

  4. 3 Common Tax Questions Answered
    Taxes

    3 Common Tax Questions Answered

comments powered by Disqus
Hot Definitions
  1. Last In, First Out - LIFO

    An asset-management and valuation method that assumes that assets produced or acquired last are the ones that are used, sold ...
  2. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  3. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  4. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  5. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  6. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
Trading Center