Cost of acquisition rules clarified: purchase price, depreciation adjustments, and prior-equity valuation consequences for capital gains. Defines cost of improvement as nil for goodwill/intangibles and otherwise as post-base-date capital expenditures on additions or alterations, excluding deductible expenses; cost of acquisition for intangibles and rights is purchase price if bought, previous owner's purchase price in assimilated transfers, or nil otherwise, reduced by prior depreciation on goodwill; special provisions adjust acquisition cost for financial-asset allotments, renunciations and for certain long-term equity where cost may be the higher of actual cost and a fair market value-based computation; taxpayers holding assets before the base date may elect cost or base-date fair market value, subject to a stamp-duty cap for land and buildings, and previous-owner cost unknown is treated as the fair market value on the date the previous owner acquired the asset.