Explore commonly used personal finance terms.
Adjusted Cost Base (ACB) refers to the cost of an asset, adjusted for any additions (such as capital improvements) or deductions (like depreciation). ACB is particularly relevant in calculating capital gains or losses for tax purposes. For example, if you sell an asset, the capital gain or loss is calculated based on the difference between the sale price and the ACB. Keeping accurate records of the ACB helps investors determine taxable amounts on their investments when they sell them at a profit or loss.
