Question 1

Which would reduce taxes the most for a high income earner (income over $100 000)?

Accepted Answer

A) $4800 interest on a student loan 
B) $4800 RRSP contribution 
C) $4800 medical expenses 
D) These would have the same effect. 
A) $4800 interest on a student loan 
B) $4800 RRSP contribution 
C) $4800 medical expenses 
D) These would have the same effect.

Question 2

Provincial governments collect property taxes.

Accepted Answer

A) True 
 B)False

Question 3

All interest and dividends received by an individual taxpayer are taxable.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is not a legitimate deduction in Canada?

Accepted Answer

A) Mortgage interest on your home 
B) Union dues 
C) RRSP contributions 
D) The cost of investment advice 
A) Mortgage interest on your home 
B) Union dues 
C) RRSP contributions 
D) The cost of investment advice

Question 5

Which of the following income is taxed at the lowest rate?

Accepted Answer

A) Salary 
B) Interest 
C) Capital gains 
D) Tips 
A) Salary 
B) Interest 
C) Capital gains 
D) Tips

Question 6

Samantha filed her tax return on August 1st and had a $4000 balance owing.If the prescribed interest rate is 5%,how much did she owe in total?

Accepted Answer

A) $4050 
B) $4320 
C) $4051 
D) $4374 
A) $4050 
B) $4320 
C) $4051 
D) $4374

Question 7

Interest paid on a qualified student loan can be used to reduce tax owing through a tax credit.

Accepted Answer

A) True 
 B)False

Question 8

The combined Federal and Provincial tax rates vary a lot from province to province.

Accepted Answer

A) True 
 B)False

Question 9

RRSP rules limit a taxpayer's contributions to the higher of 18 percent of total income to a maximum amount of $25 000.

Accepted Answer

A) True 
 B)False

Question 10

Meg makes RRSP contributions resulting in a tax rebate of $1200 each year.She is in a 30 percent tax bracket.What was the amount of her contribution?

Accepted Answer

A) $3000 
B) $4000 
C) $22 222 
D) Unknown 
A) $3000 
B) $4000 
C) $22 222 
D) Unknown

Question 11

Jake invested $800 in an RRSP.If he is in the 30 percent marginal tax bracket,he will

Accepted Answer

A) pay $120 less in taxes. 
B) pay $240 less in taxes. 
C) receive an $800 tax credit. 
D) receive a $400 tax deduction. 
A) pay $120 less in taxes. 
B) pay $240 less in taxes. 
C) receive an $800 tax credit. 
D) receive a $400 tax deduction.

Question 12

Your gross wages are subject to Canada Revenue Agency taxes that will fund your CPP one day.

Accepted Answer

A) True 
 B)False

Question 13

When taxable income on a progressive basis exceeds certain thresholds

Accepted Answer

A) a higher rate of tax is charged on all levels. 
B) tax credits become more important. 
C) deductions reach a maximum allowable amount. 
D) the tax rate is increased until a new income level is exceeded. 
A) a higher rate of tax is charged on all levels. 
B) tax credits become more important. 
C) deductions reach a maximum allowable amount. 
D) the tax rate is increased until a new income level is exceeded.

Question 14

Which of the following is not taxable income?

Accepted Answer

A) EI payments 
B) Life insurance benefits 
C) Rental income 
D) The use of a company car 
A) EI payments 
B) Life insurance benefits 
C) Rental income 
D) The use of a company car

Question 15

Marta received an inheritance of $20 000 and wants to allocate it towards her six-year-old son's education in the most effective manner.Which of the following considerations will have the greatest financial impact?

Accepted Answer

A) Contributing to an RESP in such a way as to collect the maximum Canada Education Savings Grant 
B) Benefiting from the tax deferral in an RESP account as quickly as possible 
C) Applying for the Canada Learning Bond as soon as possible 
D) Collecting the maximum Educational Assistance Payments in the RESP account 
A) Contributing to an RESP in such a way as to collect the maximum Canada Education Savings Grant 
B) Benefiting from the tax deferral in an RESP account as quickly as possible 
C) Applying for the Canada Learning Bond as soon as possible 
D) Collecting the maximum Educational Assistance Payments in the RESP account

Question 16

The maximum medical expenses deduction cannot exceed three percent of total income.

Accepted Answer

A) True 
 B)False

Question 17

Which taxpayers among the following can deduct some of his or her medical expenses?

Accepted Answer

A) Jane,who has an income of $40 000 and medical expenses of $1100 
B) Claude,who has an income of $60 000 and medical expenses of $2100 
C) Peter,who has an income of $65 000 and medical expenses of $2375 
D) Paula,who has an income of $26 000 and medical expenses of $700 
A) Jane,who has an income of $40 000 and medical expenses of $1100 
B) Claude,who has an income of $60 000 and medical expenses of $2100 
C) Peter,who has an income of $65 000 and medical expenses of $2375 
D) Paula,who has an income of $26 000 and medical expenses of $700

Question 18

List your total income,deductions,taxable income,number of deductions,and tax credits to arrive at taxable income and taxes payable.Make up an example if you don't want to supply your own figures.Explain the overall process.

Accepted Answer

Total income includes all sources of tax

Question 19

Interest income would come from earnings on

Accepted Answer

A) stocks. 
B) term deposits. 
C) RESPs. 
D) sale of mutual funds. 
A) stocks. 
B) term deposits. 
C) RESPs. 
D) sale of mutual funds.

Question 20

For qualified individuals,a contribution to a registered retirement savings plan (RRSP)will be

Accepted Answer

A) a tax credit. 
B) a deduction from total income. 
C) an employment deduction. 
D) a deduction from federal tax payable. 
A) a tax credit. 
B) a deduction from total income. 
C) an employment deduction. 
D) a deduction from federal tax payable.

Which would reduce taxes the most for a high income earner (income over $100 000)?

Provincial governments collect property taxes.

All interest and dividends received by an individual taxpayer are taxable.

Which of the following is not a legitimate deduction in Canada?

Which of the following income is taxed at the lowest rate?

Samantha filed her tax return on August 1st and had a $4000 balance owing.If the prescribed interest rate is 5%,how much did she owe in total?

Interest paid on a qualified student loan can be used to reduce tax owing through a tax credit.

The combined Federal and Provincial tax rates vary a lot from province to province.

RRSP rules limit a taxpayer's contributions to the higher of 18 percent of total income to a maximum amount of $25 000.

Meg makes RRSP contributions resulting in a tax rebate of $1200 each year.She is in a 30 percent tax bracket.What was the amount of her contribution?

Jake invested $800 in an RRSP.If he is in the 30 percent marginal tax bracket,he will

Your gross wages are subject to Canada Revenue Agency taxes that will fund your CPP one day.

When taxable income on a progressive basis exceeds certain thresholds

Which of the following is not taxable income?

Marta received an inheritance of $20 000 and wants to allocate it towards her six-year-old son's education in the most effective manner.Which of the following considerations will have the greatest financial impact?

The maximum medical expenses deduction cannot exceed three percent of total income.

Which taxpayers among the following can deduct some of his or her medical expenses?

List your total income,deductions,taxable income,number of deductions,and tax credits to arrive at taxable income and taxes payable.Make up an example if you don't want to supply your own figures.Explain the overall process.

Interest income would come from earnings on

For qualified individuals,a contribution to a registered retirement savings plan (RRSP)will be

Overview of a Financial Plan

Tools for Financial Planning - Applying Time Value Concepts

Tools for Financial Planning - Planning with Personal Financial Statements

Managing Your Financial Resources - Banking Services and Managing Your Money

Managing Your Financial Resources - Assessing, Managing, and Securing Your Credit

Managing Your Financial Resources - Purchasing and Financing a Home

Protecting Your Wealth - Auto and Homeowner's Insurance

Protecting Your Wealth - Health and Life Insurance

Personal Investing - Investing Fundamentals

Personal Investing - Investing in Stocks

Personal Investing - Investing in Bonds

Personal Investing - Investing in Mutual Funds

Retirement and Estate Planning - Retirement Planning

Retirement and Estate Planning - Estate Planning

Synthesis of Financial Planning - Integrating the Components of a Financial Plan

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Exam 4: Tools for Financial Planning - Using Tax Concepts for Planning

Which would reduce taxes the most for a high income earner (income over $100 000)?

Provincial governments collect property taxes.

All interest and dividends received by an individual taxpayer are taxable.

Which of the following is not a legitimate deduction in Canada?

Which of the following income is taxed at the lowest rate?

Samantha filed her tax return on August 1st and had a $4000 balance owing.If the prescribed interest rate is 5%,how much did she owe in total?

Interest paid on a qualified student loan can be used to reduce tax owing through a tax credit.

The combined Federal and Provincial tax rates vary a lot from province to province.

RRSP rules limit a taxpayer's contributions to the higher of 18 percent of total income to a maximum amount of $25 000.

Meg makes RRSP contributions resulting in a tax rebate of $1200 each year.She is in a 30 percent tax bracket.What was the amount of her contribution?

Jake invested $800 in an RRSP.If he is in the 30 percent marginal tax bracket,he will

Your gross wages are subject to Canada Revenue Agency taxes that will fund your CPP one day.

When taxable income on a progressive basis exceeds certain thresholds

Which of the following is not taxable income?

Marta received an inheritance of $20 000 and wants to allocate it towards her six-year-old son's education in the most effective manner.Which of the following considerations will have the greatest financial impact?

The maximum medical expenses deduction cannot exceed three percent of total income.

Which taxpayers among the following can deduct some of his or her medical expenses?

List your total income,deductions,taxable income,number of deductions,and tax credits to arrive at taxable income and taxes payable.Make up an example if you don't want to supply your own figures.Explain the overall process.

Interest income would come from earnings on

For qualified individuals,a contribution to a registered retirement savings plan (RRSP)will be

Overview of a Financial Plan

Tools for Financial Planning - Applying Time Value Concepts

Tools for Financial Planning - Planning with Personal Financial Statements

Managing Your Financial Resources - Banking Services and Managing Your Money

Managing Your Financial Resources - Assessing, Managing, and Securing Your Credit

Managing Your Financial Resources - Purchasing and Financing a Home

Protecting Your Wealth - Auto and Homeowner's Insurance

Protecting Your Wealth - Health and Life Insurance

Personal Investing - Investing Fundamentals

Personal Investing - Investing in Stocks

Personal Investing - Investing in Bonds

Personal Investing - Investing in Mutual Funds

Retirement and Estate Planning - Retirement Planning

Retirement and Estate Planning - Estate Planning

Synthesis of Financial Planning - Integrating the Components of a Financial Plan

Filters