Canadian Tax Deductions Quiz
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Questions and Answers

Which loan is considered for tax deduction purposes when calculating Amelia's taxable income?

  • None of the loans are considered
  • Loan for the RRSP investment
  • Loan for the non-registered Canadian mutual fund (correct)
  • Both loans are considered
  • If Amelia has no other deductions, what will be the impact of deducting her loan interest payments on her taxable income?

  • Her taxable income will decrease by $2,000
  • Her taxable income will increase by $3,000
  • Her taxable income will decrease by $3,000 (correct)
  • Her taxable income will remain the same
  • If Amelia's total income this year is $50,000, what will be her taxable income after deducting the interest paid on the loans for investment?

  • $47,000
  • $48,000 (correct)
  • $49,000
  • $50,000
  • What impact will the deductions of interest paid on loans for investment have on Amelia's tax liability if her marginal tax rate is 30%?

    <p>Decrease tax liability</p> Signup and view all the answers

    Assuming Amelia makes an additional $3,000 investment in her RRSP, how will this affect the deductibility of the interest payments on her RRSP loan?

    <p>Partial deduction for interest payments</p> Signup and view all the answers

    Who among the following policyholders opted to invest their policy dividends in a side account for potential additional growth?

    <p>Haaziq</p> Signup and view all the answers

    Which policyholder used their annual policy dividend to purchase one-year term insurance without proof of insurability?

    <p>Kiara</p> Signup and view all the answers

    Who among the policyholders reduced upcoming premium payments by using their annual policy dividends?

    <p>Naomi</p> Signup and view all the answers

    Which policyholder opted to use their yearly policy dividend as a single premium to purchase supplemental whole life coverage that is fully paid?

    <p>Matan</p> Signup and view all the answers

    Amelia has taken a loan to invest in a non-registered Canadian mutual fund portfolio and paid $2,000 in interest on that loan this year. She has also taken a loan to invest in her Registered Retirement Savings Plan (RRSP) and she has paid $1,000 in interest on that loan this year. What will Amelia be able to deduct from her taxable income?

    <p>$0</p> Signup and view all the answers

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