On March 1 of the current year, Kimberly disposes of shares for cash proceeds of $80,000 to
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Question:
On March 1 of the current year, Kimberly disposes of shares for cash proceeds of $80,000 to her spouse, Rebecca.
The shares have a total cost of $200,000 and a fair market value of $80,000.
Rebecca still holds the shares on April 10 of the current year.
Which of the following is a tax implication of the transaction
1) The capital loss for Kimberly is deemed to be nil.
2) Kimberly has a capital loss of $120,000.
3) The shares have an adjusted cost base of $80,000 for Rebecca.
4) Rebecca has a capital loss of $120,000.
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