During the current year, Geoff Lionel transferred a depreciable property to his spouse. The property had a fair market value of $200,000, a capital cost of $160,000, and a UCC of $107,000. It is the only asset in its CCA class. In return for the property, his spouse pays $200,000 from funds that she has received as an inheritance. Describe the tax consequences to Mr. Lionel and the tax cost of the property to his spouse after the transfer, assuming that he does not elect out of ITA 73(1). How would these results differ if Mr. Lionel elects out of ITA 73(1)?

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The Answer of During the current year, Geoff Lionel transferred a depreciable property to his spouse. The property had a fair market value of $200,000, a capital cost of $160,000, and a UCC of $107,000. It is the only asset in its CCA class. In return for the property, his spouse pays $200,000 from funds that she has received as an inheritance. Describe the tax consequences to Mr. Lionel and the tax cost of the property to his spouse after the transfer, assuming that he does not elect out of ITA 73(1). How would these results differ if Mr. Lionel elects out of ITA 73(1)?

During the Current Year, Geoff Lionel Transferred a Depreciable Property