On December 31, 2019, Mr. Tom London gives shares with an adjusted cost base of $21,500 and a fair market value of $35,200 to his 9 year old son, Patrick London. On February 24, 2020, the shares pay eligible dividends of $2,060 ($2,843 taxable amount)and, on August 31, 2020, Patrick sells the shares for $39,800. What are the tax consequences for Mr. London and Patrick 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 On December 31, 2019, Mr. Tom London gives shares with an adjusted cost base of $21,500 and a fair market value of $35,200 to his 9 year old son, Patrick London. On February 24, 2020, the shares pay eligible dividends of $2,060 ($2,843 taxable amount)and, on August 31, 2020, Patrick sells the shares for $39,800. What are the tax consequences for Mr. London and Patrick 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.