A real estate investor owns a property that has appreciated significantly but wants to defer capital gains tax. Which strategy would be most appropriate under Canadian tax law?

Option A is correct because subsection 73(1) of the Income Tax Act provides for automatic rollover treatment when property is transferred between spouses or common-law partners. Under this provision, the property transfers at the adjusted cost base (original purchase price plus improvements), meaning no capital gains are triggered at the time of transfer. The receiving spouse assumes the original cost base, effectively deferring the capital gains tax until they eventually dispose of the property. This is a legitimate tax planning strategy that allows couples to optimize their tax situation while maintaining family ownership of the asset.