On December 31, 2019, Mr. Tom London gives shares with an adjusted cost base of $21,500 and a fair market value of $35,200 to his wife, Barbara London. On February 24, 2020, the shares pay eligible dividends of $2,060 ($2,843 taxable amount)and, on August 31, 2020, Mrs. London sells the shares for $39,800. Assume that Mr. London does not elect out of ITA 73(1). What are the tax consequences for Mr. and Mrs. London in each of the years 2019 and 2020? If there are no tax consequences for either individual in a given year, you should clearly state this fact in your answer.

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The Answer of On December 31, 2019, Mr. Tom London gives shares with an adjusted cost base of $21,500 and a fair market value of $35,200 to his wife, Barbara London. On February 24, 2020, the shares pay eligible dividends of $2,060 ($2,843 taxable amount)and, on August 31, 2020, Mrs. London sells the shares for $39,800. Assume that Mr. London does not elect out of ITA 73(1). What are the tax consequences for Mr. and Mrs. London in each of the years 2019 and 2020? If there are no tax consequences for either individual in a given year, you should clearly state this fact in your answer.