Are disposition costs taxable for capital gains? (Canada)?

Are dispostion costs taxable for capital gains?
Im having trouble with a homework problem. We bought at asset for 5,000 and sold it two year later for 10,000; with disposition costs of 1,000. If the profit on the asset (say land) is treated as a capital gain....what is the taxable income for the transaction. I think it is 10,000- the cost- the disposition; but im not sure eaxaclty how to treat this. Please help

The costs of disposition are included in the calculation of the cost base.

POD $10,000
ACB ($5,000 + $1,000)
Capital Gain $4,000
Taxable Capital gain: 1/2 x $4,000 = $2,000

not sure but good luck

I believe $5000 would be the ammount that is taxed because that is the "gain"(difference between purchase price and selling price) And if i remember correctly, you are only taxed on half of the amount.
You could always give a tax return place a call and ask them.

Selling Price 10,000
less: Selling Costs 1,000
less: Capital Cost 5,000

Next Capital Gain 4,000

so it should be a 4,000 capital gain.
The disposition (selling costs) are tax deductable as a legitimate expense of selling the land.