codesto/costì

I recently found out that the Italian — or better the Tuscan — language has a distinction which has been lost in many other languages. I only know that this distinction is actively used in Japanese. It is the distinction between “there by you to whom I speak”, and “over there away from both of us”. “quello” is used for the later one, and here in the Tuscany I learned that “codesto” (as adjective) and “costì” as the place can be used: Example dialog:
A: Dammi codesto libro, per favore!
B: Questo?
A: Si, codesto costì!
B: …
A: Grazie.