Asset cost rules revised: inherited, gifted or reacquired assets use prior owner's cost reduced by depreciation adjustments. Amendments to section 43 fix actual cost for assets acquired by gift or inheritance as the previous owner's actual cost reduced by depreciation actually allowed before the operative date and by depreciation that would have been allowable to the transferee thereafter as if the asset were the only asset in the block; for re acquired assets, actual cost is the lesser of the original cost reduced by analogous depreciation adjustments or the repurchase price. The amendments also prescribe adjusted written down value treatments for blocks of assets, establish transferee cost as transferor WDV reduced by depreciation actually allowed in the preceding year for certain company transfers and amalgamations, and align certain defined terms with section 41(4).