David and Lucy were married. When Lucy died last September, she owned:  A Registered Retirement Savings Plan (RRSP) worth $375,000;  A Tax-Free Savings Account (TFSA) worth $40,000; and  A non-registered portfolio worth $200,000 with an adjusted cost base (ACB) of $100,000. Lucy had earned a net business income of $75,000 since the beginning of the year up to the day she died. Lucy had named David as the beneficiary of her Registered Retirement Savings Plan (RRSP) and Tax-Free Savings Account (TFSA) accounts and had left the non-registered portfolio to David in her will. What will the taxable income be on Lucy's final income tax return?

Answer rating: 100% (QA)

To calculate Lucys taxable income on her final income tax return we need to consider the income she ... View the full answer