Capital Gains - Question

oshier wrote: ↑ My Questions:
1.) In theory Child A should have received payment for house share, but instead "donated" it to parents. I assume the CRA wouldn't view it this way, and would view it as tax evasion? How does this person avoid a huge financial hit at tax time??
2.) Parent A sold share of Primary Residence and therefore doesn't need to worry about Capital gains, correct?

oshier wrote: ↑ I'm hoping some knowledgably people can provide some insight on this scenario, regarding 'capital gains' and potential tax implications.
Initial Situation:
Child A, Parent A, Parent B all own a house together (33% each).
The the following happens a few years ago:
1.) Child A moves out, marries, gets a new mortgage and new primary residence.
2.) Child A keeps ownership interest in house, and contributes to mortgage payments for Parents A&B.
This Year the following happens:
3.) Child A 'dissolves' any and all interest in the house with Parents A&B... Receives NO payment. Parent A, Parent B are now 50/50 owners.
4.) Child B buys out Parent A. House is now owned 50/50 by Child B and Parent B.

My Questions:
1.) In theory Child A should have received payment for house share, but instead "donated" it to parents. I assume the CRA wouldn't view it this way, and would view it as tax evasion? How does this person avoid a huge financial hit at tax time??
2.) Parent A sold share of Primary Residence and therefore doesn't need to worry about Capital gains, correct?

Thanks for any info you can provide.