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Maria has 500 shares in a Canadian public company that worth 80,000 and pay a...

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Finance

Maria has 500 shares in a Canadian public company that worth 80,000 and pay a dividend of 4,000 each year. Her adjusted cost base on these shares is 60,000. She is already in the top tax bracket. She would like your advice on the following proposed transactions. Discuss the immediate and future tax consequences to the transferor and transferee under the each of the following four independent situations.

1. She gives the shares to her husband. Election out 73(1) of rollover.

2. She gives the shares to her 19 years son

3. She sells the shares to her husband for cash 80,000, No election out 73(1)

4. She sells the shares to her16 years daughter for non-interest-bearing note of 80,000

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