In 2019, Charlotte Ramp gives shares to her spouse Michael Ramp. The shares have an adjusted cost base of $23,000 and, at the time of the gift, they have a fair market value of $35,000. Charlotte elects out of ITA 73(1)in her return of income.
During 2020, the shares pay eligible dividends of $1,800. Prior to the end of 2020, Michael sells the shares for $42,000. What are the tax consequences to Charlotte and Michael 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 In 2019, Charlotte Ramp gives shares to her spouse Michael Ramp. The shares have an adjusted cost base of $23,000 and, at the time of the gift, they have a fair market value of $35,000. Charlotte elects out of ITA 73(1)in her return of income.
During 2020, the shares pay eligible dividends of $1,800. Prior to the end of 2020, Michael sells the shares for $42,000. What are the tax consequences to Charlotte and Michael 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.

In 2019, Charlotte Ramp Gives Shares to Her Spouse Michael