Question 1

List the components that should be included in a good tax recordkeeping system.

Accepted Answer

Tax Returns and Tax
Filing Information
•...

Question 2

An estate tax is imposed on the value of an individual's property at the time of his or her death.

Accepted Answer

A) True 
 B)False

Question 3

Tax records should be kept for a minimum of __________ rears from the date you receive your notice of assessment

Accepted Answer

A)   you are not required to keep your tax records.
B)   until age 65
C)   three years for all records
D)   six years for all records
E)   three years, six years, or indefinitely, depending on the type of recordF) A) and B)
G) A) and D)

Question 4

Estimated quarterly tax installments must be made by those who

Accepted Answer

A)   are employed in a foreign country.
B)   receive dividends.
C)   work for the government.
D)   owe year-end taxes of over $2,000 for both the current year and either of the two preceding y years.
E)   have been caught committing fraud.F) A) and B)
G) A) and C)

Question 5

Sheira Harvey worked in Poland for part of the year and earned $50,000 while she was there. This income will not be included in her income for the year. This represents:

Accepted Answer

A)   A deduction
B)   An exclusion
C)   An exemption
D)   A tax credit
E)   An increase of incomeF) A) and D)
G) D) and E)

Question 6

A province may impose a personal property tax.

Accepted Answer

A) True 
 B)False

Question 7

The ______________ property tax is based on the value of land and buildings.

Accepted Answer

A)   personal
B)   real estate
C)   direct
D)   proportional
E)   regressiveF) A) and D)
G) B) and D)

Question 8

Most taxpayers have to file quarterly payments of estimated amounts owed for taxes.

Accepted Answer

A) True 
 B)False

Question 9

"Grossed-up" Canadian dividends are multiplied by what amount in order to determine the level of taxable dividends?

Accepted Answer

A)   15%
B)   18.97%
C)   45%
D)   50%
E)   60%F) B) and E)
G) B) and D)

Question 10

Which of the following is a standard tax credit?

Accepted Answer

A)   itemized deductions
B)   withholding
C)   an earned tax credit
D)   the basic personal amount
E)   capital gainsF) None of the above
G) B) and E)

Question 11

How is taxable income computed?

Accepted Answer

Taxable income is a result of subtractin...

Question 12

Real-estate property taxes are significant but not a major source of revenue for local governments.

Accepted Answer

A) True 
 B)False

Question 13

Capital gains refer to

Accepted Answer

A)   tax-exempt investments.
B)   profits from the sale of an investment asset.
C)   gains from the sale of capital assets
D)   earnings from investments such as dividends or interest.
E)   tax-deferred investments.F) B) and D)
G) A) and E)

Question 14

Tax-exempt income has a greater financial benefit than tax-deferred income.

Accepted Answer

A) True 
 B)False

Question 15

Jennifer made $2,000 worth of charitable donations. Her total income is $36,000 and she is in the 22% federal tax bracket. What is her charitable donations tax credit?

Accepted Answer

A)   $320
B)   $440
C)   $552
D)   $2,000
E)   $5,760F) C) and D)
G) B) and D)

Question 16

Tax evasion refers to illegal actions to reduce one's taxes.

Accepted Answer

A) True 
 B)False

Question 17

Winning a $10,000 the lottery affects a person's tax situation by

Accepted Answer

A)   increasing the standard deduction by $10,000.
B)   increasing the taxpayer's marginal tax rate to 50%.
C)   is taxed at the same rate as capital gains.
D)   is not taxed.
E)   is added to income and taxed accordingly.F) A) and C)
G) A) and E)

Question 18

Money received in the form of dividends or interest is ____________ income.

Accepted Answer

A)   business income
B)   earned or employment
C)   excluded
D)   capital gain
E)   investmentF) A) and B)
G) D) and E)

Question 19

According to the textbook, for which groups would a TFSA be particularly beneficial and why?

Accepted Answer

• Canadians with below-average incomes-T...

Question 20

Taxes are only considered in financial planning in April.

Accepted Answer

A) True 
 B)False

Exam 3: Planning Your Tax Strategy

Sheira Harvey worked in Poland for part of the year and earned $50,000 while she was there. This income will not be included in her income for the year. This represents:

Correct AnswerverifiedShow Answer

Tax evasion refers to illegal actions to reduce one's taxes.

Correct AnswerverifiedShow Answer

An estate tax is imposed on the value of an individual's property at the time of his or her death.

Correct AnswerverifiedShow Answer

Real-estate property taxes are significant but not a major source of revenue for local governments.

Correct AnswerverifiedShow Answer

Estimated quarterly tax installments must be made by those who

Correct AnswerverifiedShow Answer

Winning a $10,000 the lottery affects a person's tax situation by

Correct AnswerverifiedShow Answer

Tax records should be kept for a minimum of __________ rears from the date you receive your notice of assessment

Correct AnswerverifiedShow Answer

Tax-exempt income has a greater financial benefit than tax-deferred income.

Correct AnswerverifiedShow Answer

Capital gains refer to

Correct AnswerverifiedShow Answer

"Grossed-up" Canadian dividends are multiplied by what amount in order to determine the level of taxable dividends?

Correct AnswerverifiedShow Answer

Which of the following is a standard tax credit?

Correct AnswerverifiedShow Answer

The ______________ property tax is based on the value of land and buildings.

Correct AnswerverifiedShow Answer

According to the textbook, for which groups would a TFSA be particularly beneficial and why?

Correct Answerverified• Canadians with below-average incomes-T...View AnswerShow Answer

How is taxable income computed?

Correct AnswerverifiedTaxable income is a result of subtractin...View AnswerShow Answer

Jennifer made $2,000 worth of charitable donations. Her total income is $36,000 and she is in the 22% federal tax bracket. What is her charitable donations tax credit?

Correct AnswerverifiedShow Answer

Most taxpayers have to file quarterly payments of estimated amounts owed for taxes.

Correct AnswerverifiedShow Answer

Money received in the form of dividends or interest is ____________ income.

Correct AnswerverifiedShow Answer

Taxes are only considered in financial planning in April.

Correct AnswerverifiedShow Answer

A province may impose a personal property tax.

Correct AnswerverifiedShow Answer

List the components that should be included in a good tax recordkeeping system.

Correct AnswerverifiedTax Returns and TaxFiling Information•...View AnswerShow Answer

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• Canadians with below-average incomes-T...
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Taxable income is a result of subtractin...
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Tax Returns and Tax
Filing Information
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