Stacey, a lawyer, earns a very high income and owns a home with a $250,000 mortgage at
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Question:
Stacey, a lawyer, earns a very high income and owns a home with a $250,000 mortgage at 5%. She has $45,000 in RRSP contribution room. Her marginal tax rate is 50%. She asks you how she can make the best use of her $20,000 bonus from work. Which of the following options are you most likely to recommend?
Make a lump sum payment of $20,000 on her mortgage loan.
Deposit $20,000 in a non-registered investment.
Contribute $10,000 to her RRSP and make a lump sum payment of $10,000 on her mortgage loan.
Contribute $20,000 to her RRSP.
Related Book For
South-Western Federal Taxation 2018 Comprehensive
ISBN: 9781337386005
41st Edition
Authors: David M. Maloney, William H. Hoffman, Jr., William A. Raabe, James C. Young
Posted Date: