Steve gifted shares in a public corporation to his fifteen-year-old son,Simon.The ACB of the shares was $10,000.During the year,Simon received $500 in dividends from the shares.Simon then sold the shares for $12,000.Which of the following tax situations is true for Steve and Simon?

Question

Quizplus · Accepted Answer

Since Steve gifted the shares to Simon, Simon is responsible for reporting any income or capital gain from the shares. Simon will have to report the $500 in dividends and the $2,000 capital gain on his tax return. However, since Steve gifted the shares, he will not have to report anything on his tax return.

Steve Gifted Shares in a Public Corporation to His Fifteen-Year-Old