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CANADIAN TAX:I Anna wishes to assist her 22-year-old son with his college expenses. Anna paid $4 a share for 1,500 shares of the company that she now owns. At the moment, their share price on the market is $7. She wants to generate a capital loss in order to somewhat offset the capital gain she had on a piece of property she sold earlier in the year, which is why she is reluctant to just hand her son the shares. She will therefore sell her the shares for $2 a share. Since she is in a much lower tax band, she can then sell the shares and record the remaining capital gain on her return. Will the transaction result in the necessary capital loss for her? Does she anticipate a capital gain? When she sells the shares, would her son realize a $3 per share capital gain? If double taxes result from this transaction, what should she do? She also has a sixteen-year-old son and shares in another company. She has acquired 500 shares of this other company for $10 a share. The value has only slightly increased to $11/ share. These shares also provide her with yearly dividends. Given that her teenage son is only working a part-time job and would be attending college in a few years, she was considering selling these shares to him for a total of $100 in order to incur another capital loss. What else should she think about

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