Podcast
Questions and Answers
Which type of account has special tax status allowing for tax-deductible contributions and deferred taxes on investment earnings?
Which type of account has special tax status allowing for tax-deductible contributions and deferred taxes on investment earnings?
- Taxable account
- Registered account (correct)
- Standard account
- Non-registered account
What is the main difference in taxation between registered and non-registered accounts?
What is the main difference in taxation between registered and non-registered accounts?
- Limitations on withdrawals
- Deferral of taxes on investment earnings (correct)
- Treatment of interest income
- Tax-deductible contributions
Which organization registers savings plans under the federal Income Tax Act in Canada?
Which organization registers savings plans under the federal Income Tax Act in Canada?
- Canada Investment Board
- Canadian Tax Bureau
- Canadian Financial Authority
- Canada Revenue Agency (CRA) (correct)
What type of income has its tax treatment described in the lesson?
What type of income has its tax treatment described in the lesson?
What does it mean for contributions to be tax deductible in registered accounts?
What does it mean for contributions to be tax deductible in registered accounts?
What is Ben's combined marginal tax rate if his taxable income is $165,000?
What is Ben's combined marginal tax rate if his taxable income is $165,000?
If Ben's taxable income is $89,000, what would be his average tax rate?
If Ben's taxable income is $89,000, what would be his average tax rate?
Between $150,473 and $157,464, what is the difference in the combined marginal tax rates?
Between $150,473 and $157,464, what is the difference in the combined marginal tax rates?
For taxable incomes over $214,368, what is the federal marginal tax rate?
For taxable incomes over $214,368, what is the federal marginal tax rate?
What is Ben's provincial tax payable if his taxable income is $80,000?
What is Ben's provincial tax payable if his taxable income is $80,000?
At what taxable income level would Ben's average tax rate be exactly 28%?
At what taxable income level would Ben's average tax rate be exactly 28%?
Between $131,220 and $150,473, how much higher is the federal marginal tax rate compared to the Alberta marginal tax rate?
Between $131,220 and $150,473, how much higher is the federal marginal tax rate compared to the Alberta marginal tax rate?
If Ben's taxable income is $250,000, what would be his total tax payable (federal and provincial)?
If Ben's taxable income is $250,000, what would be his total tax payable (federal and provincial)?
Why was the gross-up and tax credit mechanism designed for Canadian dividends?
Why was the gross-up and tax credit mechanism designed for Canadian dividends?
What type of income do dividends come from?
What type of income do dividends come from?
What is the purpose of the dividend tax credit?
What is the purpose of the dividend tax credit?
Why might an eligible individual in a lower tax bracket end up with a negative marginal tax rate?
Why might an eligible individual in a lower tax bracket end up with a negative marginal tax rate?
Why is it considered unfair for shareholders to pay taxes at their regular marginal tax rate on Canadian dividends?
Why is it considered unfair for shareholders to pay taxes at their regular marginal tax rate on Canadian dividends?
Why do dividends paid by foreign corporations not receive special tax treatment when paid to Canadian shareholders?
Why do dividends paid by foreign corporations not receive special tax treatment when paid to Canadian shareholders?
What would happen if shareholders were taxed twice on Canadian dividends?
What would happen if shareholders were taxed twice on Canadian dividends?
Why does Pavel's federal marginal tax rate (MTR) matter in determining his federal tax payable for each dividend?
Why does Pavel's federal marginal tax rate (MTR) matter in determining his federal tax payable for each dividend?
What is one way in which mutual funds generate taxable income for investors?
What is one way in which mutual funds generate taxable income for investors?
When does a distribution occur in a mutual fund?
When does a distribution occur in a mutual fund?
What happens if a mutual fund investor sells units of the fund at a market price greater than their cost?
What happens if a mutual fund investor sells units of the fund at a market price greater than their cost?
Why are capital losses important in the context of mutual funds?
Why are capital losses important in the context of mutual funds?
What does it mean when a mutual fund distributes a capital gain to unitholders?
What does it mean when a mutual fund distributes a capital gain to unitholders?
How is income earned at the trust level and not distributed to unitholders treated for taxation?
How is income earned at the trust level and not distributed to unitholders treated for taxation?
In December, an investor sells mutual fund units for $3,000 when they were initially purchased for $2,500. What is the correct term for this scenario?
In December, an investor sells mutual fund units for $3,000 when they were initially purchased for $2,500. What is the correct term for this scenario?
'Flow-through' of taxable income refers to what process in mutual funds?
'Flow-through' of taxable income refers to what process in mutual funds?
What type of income can be flowed through to mutual fund corporation unitholders?
What type of income can be flowed through to mutual fund corporation unitholders?
How is income generated from a mutual fund corporation reported?
How is income generated from a mutual fund corporation reported?
