Martha owns a painting by Canadian artist Maud Lewis. A number of years ago she paid $10,000
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Question:
Martha owns a painting by Canadian artist Maud Lewis. A number of years ago she paid $10,000 to acquire the painting. Based on a recent appraisal, the painting is now worth $35,000.
Inadequate Consideration For each of the two situations below, determine the taxable capital gain to Martha and the adjusted cost base to the purchaser of the painting. Situation A: Martha sells the painting to her brother Keith for proceeds of $42,500. Situation B: Martha sells the painting to her neighbour Maureen for $28,500.
Related Book For
Canadian Income Taxation Planning And Decision Making
ISBN: 9781259094330
17th Edition 2014-2015 Version
Authors: Joan Kitunen, William Buckwold
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