1. The taxable impact of the annual growth on an investment is most likely to affect which...
Question:
1. The taxable impact of the annual growth on an investment is most likely to affect which type of account?
a. A RRIF
b. A non-registered account
c. An RRSP
d. A TFSA
2. Implicit costs are costs stated in the fund prosectus.
True
False
3. When a mutual fund earns dividends (from a shares that it owns), what tax impactwill this have?
a. | The dividend will flow through the mutual fund to the investors, and they will receive a tax slip which needs to be included in their annual income. | |
b. | The dividend tax credit offsets the dividend income earned by the fund, so there is no impact for either the investor or the mutual fund company. | |
c. | There will be no tax impact for the investors. The mutual fund earns the dividend in it's name, and files its corporate/trust taxes accordingly, thus paying taxes on the dividend. | |
d. | This will trigger a capital gain, which will then need to be included in both the tax filings of the investors and the mutual fund company. |
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill