Lindsay Shaw is a partner in a Canadian partnership. On April 30th of the current year she transferred title of a piece of land that she held as a capital asset to the partnership in exchange for cash of $40,000. The land was valued at $100,000 at the time of the transfer. Lindsay had paid $40,000 for the land when she purchased it several years ago.
Determine the tax consequences resulting from the transfer of title to the land to the partnership. Income Tax Act reference: ITA 97(1).