Ian Home has a property that he purchased several years ago for $20,000. It has a current fair market value of $30,000.

The following Six Scenarios are proposed for the transfer of this property by Ian to a trust. For each Scenario, indicate the tax consequences to Ian at the time of transfer, as well as the adjusted cost base of the property within the trust.

Scenario 1: Transfer to joint spousal trust.

Scenario 2: Transfer to inter vivos trust for a business partner.

Scenario 3: Transfer to testamentary trust for a 22 year old son.

Scenario 4: Transfer to testamentary qualifying spousal trust.

Scenario 5: Transfer to an alter ego trust.

Scenario 6: Transfer to an inter vivos trust for a minor child.

Answer rating: 100% (QA)

Scenario 1 Transfers between you and your spouse are generally not taxable for income tax purposes Y... View the full answer