Mr. Randy Cleroux owns 1,000 shares of Lyton Industries Ltd. These shares have an adjusted cost base of $105 per share. On December 31, 2019, the shares are trading at $156 per share. At this time, he gives 400 of these shares to his 12 year old son. He gives the remaining 600 shares to his wife.
During 2020, the shares pay eligible dividends of $4.50 per share. On December 31, 2020, both his son and his spouse sell their shares for $142 per share. Assume that Mr. Cleroux does not elect out of ITA 73(1). Indicate the tax consequences of these transactions for Mr. Cleroux, his son, and his spouse, 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 Mr. Randy Cleroux owns 1,000 shares of Lyton Industries Ltd. These shares have an adjusted cost base of $105 per share. On December 31, 2019, the shares are trading at $156 per share. At this time, he gives 400 of these shares to his 12 year old son. He gives the remaining 600 shares to his wife.
During 2020, the shares pay eligible dividends of $4.50 per share. On December 31, 2020, both his son and his spouse sell their shares for $142 per share. Assume that Mr. Cleroux does not elect out of ITA 73(1). Indicate the tax consequences of these transactions for Mr. Cleroux, his son, and his spouse, 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.

Mr Randy Cleroux Owns 1,000 Shares of Lyton Industries Ltd