Patricia gifted her income-generating rental property to her 17-year-old daughter. The property generates $1,200 in rental income monthly. Under the attribution rules, who is responsible for reporting this rental income?

Question: Patricia gifted her income-generating rental property to her 17-year-old daughter. The property generates $1,200 in rental income monthly. Under the attribution rules, who is responsible for reporting this rental income?

Answer options: ✅ Patricia, because her daughter is a minor.

• Patricia's daughter, as she is the legal owner.
• Patricia and her daughter, splitting the income equally.
• Neither, as gifts are not subject to attribution rules for real property.

Correct answer: Patricia, because her daughter is a minor.

Explanation: Under the Canada Revenue Agency's attribution rules, income from property transferred to a minor child will be attributed back to the transferor (Patricia) as long as the child is under 18 years of age.