Mrs$.$ Christine Rocker, a management consultant, is married with two children. Her son, Dimple, is $27$ years old, and her daughter,

Betsy, is $13.$ Mrs$.$ Rocker has not previously gifted nor sold property to her spouse or either of her children.

Mrs$.$ Rocker is considering gifting all or part of the properties to her spouse and$/$or her two children. Assume that $(1)$ each property is sold two years after being gifted for

$ $50,500$ more than its FMV at the time of the gift, $(2)$ no CCA will be claimed on the rental property once it has been gifted, and $(3)$ the TOSI rules do not apply to any of the property transfers. On April $1$ of the current$$ year, Mrs$.$ Rocker owns the following$$ properties:

Rocker

Consulting Ltd$.$

Mrs$.$ Rocker owns$100\%$ of the voting shares of Rocker

Consulting$$ Ltd$.,$ a$$ Canadian$-$controlled private corporation$($CCPC$).$ These shares have an ACB of $$206,000$ and a current FMV of $$474,900.$

Rental Property

Mrs$.$ Rocker owns a rental building. The building was purchased at a cost of

$$189,900$ and the land for

$$99,700.$

On April $1$ of the current$$ year, the UCC balance is

$$125,100,$ and its FMV is estimated to be

$$275,400.$

Assume that the FMV of the land on which the building is situated remains equal to its cost of

$$99,700$ and will remain so for the next four years.

Salton Inc.

Mrs$.$ Rocker owns $4,300$ shares of Salton $$Inc$.,$ a Canadian public company. These shares have an ACB of $$211,800$ and a current FMV of $$384,500.$

Farm Land

Mrs$.$ Rocker owns farm land with a cost of

$$80,300$ and a current FMV of $$175,500.$

Mrs$.$ Rocker$\text{'}$s $$son$,$ Dimple$,$ uses the farm land in a farming business carried on to grow various crops.

For each of the$$ properties, provide the income tax consequences on the assumption that the property is gifted$$ to:

A$.$

Her spouse and that she does not elect to avoid the ITA$73(1)$ rollover.

B$.$

Her spouse and that she does elect to avoid the ITA$73(1)$ rollover.

C$.$

Her$13-$year$-$old daughter,

Betsy.

D$.$

Her$27-$year$-$old son,

Dimple.

The$$ "income tax$$ consequences" should$$ include:

$$

the income tax that will be recognized by Mrs$.$ Rocker at the time of the$$ gift;

$$

the tax attributes of the property to the recipient of the$$ gift;

$$

the income tax treatment of any income earned on the$$ property, including$$ dividends, rental$$ income, or farm$$ income; and

$$

the increase or decrease in net income that will be recognized by Mrs$.$ Rocker$,$and$/$or the recipient of the gift when the property is sold three years after it was gifted.