Question
Use the following information to answer questions #17, #18 and #19. In 2007, Matt inherited lump sum money that he used to purchase a
Use the following information to answer questions #17, #18 and #19. In 2007, Matt inherited lump sum money that he used to purchase a non-registered account in his sole name. His initial investment was $220,000 and in 2019, the fair market value of the portfolio totaled $450,000. In 2014, he had purchased a bachelor suite for his son Zachary that he paid $85,000 for. By 2019, the unit was appraised at $120,000. This year Matt has decided to transfer ownership of both the portfolio and the suite into joint title with Zachary. He was unaware that there were tax implications for doing so. After consulting with his Accountant, he decided to proceed with the ownership transfer. Matt and his son both have a 25% MTR. Calculate Matt's total tax liability on the disposition of the suite and portfolio? $2,588 $11,775 $14.444 $16,563
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