Please do the Assigment Problem 9-9

Required: Explain the tax consequences that would result in each of the following Cases for Mr. Caswell for the current year. In your solutions for Cases A and B, include the tax base of the assets to the transferee. A. Mr. Caswell dies on September 1 of the current year, leaving all of his property to his spouse, Charlene. B. Mr. Caswell dies on September 1 of the current year, leaving all of his property to his son, John. C. Mr. Caswell departs from Canada and ceases to be a resident on September 1 of the current year (covered in Chapter 8). Assignment Problem Nine - 9 (Transfers To A Spouse - Income Attribution) Jason Holt has owned a number of rental properties for many years. He has been married to Geena Holt for 5 years. Their pre-nuptial agreement requires Jason to gift a rental property to Geena on each 5th anniversary of their marriage. On January 1, 2019, as required by their pre-nuptial agreement, Jason gifts one of the rental properties to Geena. Information on this property is as follows: Land Building Original Cost $123,000 $387,000 Fair Market Value - Date Of Transfer 167,000 426,000 UCC - Date Of Transfer N/A 299,772 During 2019, the property had a net rental income, before the deduction of CCA, of $23,451. Geena plans to deduct maximum CCA. On January 1, 2020, after concluding that other investments would provide a better return, Geena sells the rental property for $650,000. At this time, an appraisal indicates that the fair market value of the land has increased to $175,000, leaving $475,000 (5650,000 - $175,000) to be allocated to the building, Required: Determine the tax effects associated with the transfer and subsequent sale of the property for both Mr. and Mrs. Holt assuming: A. The facts are as stated in the problem and that Mr. Holt does not elect out of ITA 73(1). B. The pre-nuptial agreement requires that Geena purchase the property for its fair market value, using her own funds. On this sale, Mr. Holt elects out of ITA 73(1). Assignment Problem Nine - 10 (Gifts And Income Attribution) Ms. Vicky Vaughn is a very successful attorney with an income of over $500,000 per year. She is married to Mr. Jonathan Flex, a former Mr. Canada. Mr. Flex has no income of his own. She and Mr. Flex have two children. Their daughter Sheila is 27, while their son Biff is 15. To date, Ms. Vaughn has not gifted or sold property to either her spouse or to her children. At the end of the current year, Ms. Vaughn owns the following assets: Shares Of TD Bank Ms. Vaughn owns 10,000 shares with a current fair market value of $700,000. The adjusted cost base for these shares is $550,000. Vaughn Enterprises Ltd. Ms. Vaughn owns all of the shares of this Canadian controlled private company. Her adjusted cost base for these shares is $475,000. A business valuator has concluded that the shares are currently worth $1,200,000. Vaughn Enterprises is not a qualified small business corporation for purposes of the lifetime capital gains deduction. Required: Explain the tax consequences that would result in each of the following Cases for Mr. Caswell for the current year. In your solutions for Cases A and B, include the tax base of the assets to the transferee. A. Mr. Caswell dies on September 1 of the current year, leaving all of his property to his spouse, Charlene. B. Mr. Caswell dies on September 1 of the current year, leaving all of his property to his son, John. C. Mr. Caswell departs from Canada and ceases to be a resident on September 1 of the current year (covered in Chapter 8). Assignment Problem Nine - 9 (Transfers To A Spouse - Income Attribution) Jason Holt has owned a number of rental properties for many years. He has been married to Geena Holt for 5 years. Their pre-nuptial agreement requires Jason to gift a rental property to Geena on each 5th anniversary of their marriage. On January 1, 2019, as required by their pre-nuptial agreement, Jason gifts one of the rental properties to Geena. Information on this property is as follows: Land Building Original Cost $123,000 $387,000 Fair Market Value - Date Of Transfer 167,000 426,000 UCC - Date Of Transfer N/A 299,772 During 2019, the property had a net rental income, before the deduction of CCA, of $23,451. Geena plans to deduct maximum CCA. On January 1, 2020, after concluding that other investments would provide a better return, Geena sells the rental property for $650,000. At this time, an appraisal indicates that the fair market value of the land has increased to $175,000, leaving $475,000 (5650,000 - $175,000) to be allocated to the building, Required: Determine the tax effects associated with the transfer and subsequent sale of the property for both Mr. and Mrs. Holt assuming: A. The facts are as stated in the problem and that Mr. Holt does not elect out of ITA 73(1). B. The pre-nuptial agreement requires that Geena purchase the property for its fair market value, using her own funds. On this sale, Mr. Holt elects out of ITA 73(1). Assignment Problem Nine - 10 (Gifts And Income Attribution) Ms. Vicky Vaughn is a very successful attorney with an income of over $500,000 per year. She is married to Mr. Jonathan Flex, a former Mr. Canada. Mr. Flex has no income of his own. She and Mr. Flex have two children. Their daughter Sheila is 27, while their son Biff is 15. To date, Ms. Vaughn has not gifted or sold property to either her spouse or to her children. At the end of the current year, Ms. Vaughn owns the following assets: Shares Of TD Bank Ms. Vaughn owns 10,000 shares with a current fair market value of $700,000. The adjusted cost base for these shares is $550,000. Vaughn Enterprises Ltd. Ms. Vaughn owns all of the shares of this Canadian controlled private company. Her adjusted cost base for these shares is $475,000. A business valuator has concluded that the shares are currently worth $1,200,000. Vaughn Enterprises is not a qualified small business corporation for purposes of the lifetime capital gains deduction