Marilyn Fox owns a large piece of land that she acquired several years ago for $85,000. For several years, she has been using the property to run a high security parking lot operation. On January 1, 2020, she gives the property to her common-law partner Ellen Degen. At this time, the fair market value of the land is $170,000. Marilyn does not elect out of ITA 73(1). During 2020, Ellen continues the parking lot operation, which produces a net business income of $8,500. On January 1, 2021, Ellen sells the parking lot for $190,000.
What are the tax consequences of these events for Marilyn and Ellen during 2020 and 2021? 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 Marilyn Fox owns a large piece of land that she acquired several years ago for $85,000. For several years, she has been using the property to run a high security parking lot operation. On January 1, 2020, she gives the property to her common-law partner Ellen Degen. At this time, the fair market value of the land is $170,000. Marilyn does not elect out of ITA 73(1). During 2020, Ellen continues the parking lot operation, which produces a net business income of $8,500. On January 1, 2021, Ellen sells the parking lot for $190,000.
What are the tax consequences of these events for Marilyn and Ellen during 2020 and 2021? If there are no tax consequences for either individual in a given year, you should clearly state this fact in your answer.

Marilyn Fox Owns a Large Piece of Land That She