Question
pts
Mr Smith owns IBM shares with an ACB of $ a share. Mr Smith wishes to gift to his son who is
years old on January The FMV at the time was $ a share. The shares paid a dividend
in each year of $ Five years later the son sold the shares on the open market for $ a share.
What are the tax consequences?
The capital gain of $$$$ when the shares are sold will not be attributed back to
Smith but dividend received from the share each year will be attributed back to Mr Smith until the year in
which the son turns years of age
The capital gain $$$$ when the shares are sold will not be attributed back to Mr
Smith but dividend received from the share will be attributed back to Mr Smith each year until the son sells
the shares
The capital gain $$$$ when the shares are sold will not be attributed back to Mr
Smith but dividend received from the shares will be attributed back to Mr Smith each year until the year in
which the son turns years of age
The capital gain $$$$ when the shares are sold will be attributed back to Mr Smith
including the dividend each year received from the shares
