Exam 3: Planning Your Tax Strategy

In 2009, Glenn is allowed to contribute $5,000 to a TFSA.He contributes $2,000 for that year.If he withdraws $1,000 the same year from the TFSA account, the following year:

Capital gains refer to

A tax credit of $100 for a person in a 28 percent tax bracket would reduce a person's taxes by

What is the maximum percentage of last year's earned income that can be contributed to an RRSP?

Earnings from a limited partnership would be an example of ____________ income.

An expense that would be included in the deductions of a taxpayer is

What is step 3 in computing taxable income and your tax liability?

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

The principal purpose of taxes is to control economic conditions.

The financial planning objective is to:

There is no significant difference between a federal tax credit and a federal tax deduction.

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

Tax Freedom Day occurs:

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:

Income from a partnership is included under net business income.

What is the least common type of tax filing error, of those listed?

An example of a non-refundable tax credit is

One of the legitimate methods to reduce one's taxes is tax avoidance

A tax ____________ is an amount subtracted directly from the amount of taxes owed.