Martin Ho owns a farm property. Relevant information is as follows:
Land - The land has an adjusted cost base of $435,000 and a fair market value of $584,000.
Building - The barn has a UCC of $140,000, a capital cost of $165,000, and a fair market value of $175,000.
The property is transferred to his son. The son pays $470,000 for the land. No payment is made for the barn. Describe the tax consequences of this transfer for both Martin and his son.

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The Answer of Martin Ho owns a farm property. Relevant information is as follows:
Land - The land has an adjusted cost base of $435,000 and a fair market value of $584,000.
Building - The barn has a UCC of $140,000, a capital cost of $165,000, and a fair market value of $175,000.
The property is transferred to his son. The son pays $470,000 for the land. No payment is made for the barn. Describe the tax consequences of this transfer for both Martin and his son.

Martin Ho Owns a Farm Property