Your client owns shares of ABC Co. that have a FMV of $35,000 and an ACB of
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Question:
Your client owns shares of ABC Co. that have a FMV of $35,000 and an ACB of $24,000. They wish to transfer the shares to their spouse. Their investment advisor predicts that the value of the shares will grow to $58,000 in the next two years.
Required
For each of the following scenarios, discuss the tax implications to your client and their spouse.
• Scenario 1: Client sells their shares to their spouse for cash of $35,000 and does not elect out of ITA 73(1).
• Scenario 2: Client sells their shares to their spouse for cash of $35,000 and elects out of ITA 73(1).
Related Book For
Introduction to Financial Accounting
ISBN: 978-0133251036
11th edition
Authors: Charles Horngren, Gary Sundem, John Elliott, Donna Philbrick
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