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What are the tax implications for ms carpet

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Reference no: EM133184071

Question - In early 20X1, Mr. Carpet purchased $200,000 of common shares in a company listed on the local stock exchange, with an annual eligible dividend of $5,000. The current fair market value of the shares is $300,000. Mr. Carpet would like to transfer these shares to his wife (Ms. Carpet) and two children, aged 17 and 20.

Required -

Part A - What are the tax implications for all parties if the shares are gifted to his wife and two children?

Part B - What are the tax implications for Ms. Carpet if Mr. Carpet formally grants her a loan to purchase the shares?

Reference no: EM133184071

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