John sold a rental property (ACB $250,000) to his wife, Deborah, for $400,000 on January 5, 2018. At the time of this sale, the fair market value was $600,000. Deborah held onto the rental property until December 27, 2018, when she sold it for $850,000. What are the taxable capital gains that John and Deborah must report on their 2018 tax returns with respect to the sale of the rental property? Assume that neither individual has any principal residence claims on the rental property.

	The taxable capital gains are $75,000 for John and $225,000 for Deborah.
	The taxable capital gains are $175,000 for John and $225,000 for Deborah.
	The taxable capital gains are $75,000 for John and $125,000 for Deborah.
	The taxable capital gains are $175,000 for John and $125,000 for Deborah.