Cost of acquisition adjustment: interest deductions and non-taxable trust distributions are excluded from asset acquisition basis. Deductions for interest and specified chapter deductions are excluded from the cost of acquisition or cost of improvement. For business trust units, any non-taxable distributions received by a unit holder reduce the cost of acquisition and are deemed to have always reduced that cost; if a unit transfer is not treated as a transfer and cost is determined under alternative rules, amounts received before and after the transaction are also to be reduced from the cost.