Mrs. Betty Wong owns farm property consisting of land with an adjusted cost base of $271,000 and a fair market value of $365,000, along with a barn with a UCC of $90,000, a capital cost of $120,000, and a fair market value of $110,000. The property is transferred to her 67 year old son in return for a payment of $300,000 for the land. No payment is made for the barn.
Describe the tax consequences of this transfer, for both Mrs. Wong and her son.

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The Answer of Mrs. Betty Wong owns farm property consisting of land with an adjusted cost base of $271,000 and a fair market value of $365,000, along with a barn with a UCC of $90,000, a capital cost of $120,000, and a fair market value of $110,000. The property is transferred to her 67 year old son in return for a payment of $300,000 for the land. No payment is made for the barn.
Describe the tax consequences of this transfer, for both Mrs. Wong and her son.

Mrs Betty Wong Owns Farm Property Consisting of Land with an Adjusted