Canadian Tax Deductions Quiz

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

If Amelia has no other deductions, what will be the impact of deducting her loan interest payments on her taxable income?

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?

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%?

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?

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

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

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

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

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?