Jamie wanted to establish an education fund for his 6-year old son, Michael. Jamie decided to transfer his shares in a local manufacturing company into an inter vivos trust for Michael, with the provision that Michael could receive the shares anytime after his 18th birthday. When Jamie first purchased his 100 shares, he paid $15 per share, for a total of $1,500. When he established the trust, the shares were each valued at $19.50. Michael waited until he was 20 years old to withdraw the shares from the trust. Five years later, he sold them for $44 per share, for a total of $4,400 At age 25 (in the year 2022), Michael would have to report a taxable capital gain of how much?

Answer rating: 100% (QA)

To calculate the taxable capital gain we need to determine the difference between the selling price ... View the full answer