Figaro opened a Tax-Free Savings Account (TFSA) on January 1, 2014, depositing $5,000 then. He deposited another $5,000 on January 1, 2015. He withdrew the entire balance in the plan, $12,000, on December 31, 2016. Assuming that income in the plan was 50% interest and 50% capital gains, earned equally in each of the two years, how much taxable income would Figaro have had to report on his 2016 income tax return as the consequence of the withdrawal?

Answer rating: 100% (QA)

To calculate the taxable income resulting from the withdrawal of funds from Figaros TaxFree Savings ... View the full answer