Exam (elaborations)
FMLY 2400 - LECTURE- TAXATION MATTERS EXAM STUDY GUIDE
- Course
- Institution
FMLY 2400 - LECTURE- TAXATION MATTERS EXAM STUDY GUIDE ...
[Show more]
Content preview
FMLY 2400 - LECTURE- TAXATIONMATTERS EXAM STUDY GUIDE
effective tax strategy - Answer -vital for successful financial planning
goal of tax strategy - Answer maximize after tax cash flows and net worth
important in terms of taxes - Answer -know current tax laws as they affect you
-make employment, purchase and investment decisions that leave you with the greatest
after tax cash flows and net worth
-maintain compete tax records
-file by April 30 deadline each year
types of taxes - Answer 1. taxes purchases: sales tax and excise tax
2. taxes on property: real estate tax, personal property tax
3. taxes on wealth: estate tax, capital gain
4. taxes on earnings: income tax
how to file a tax return - Answer -most file electronically
-2 systems for filing electronically
1. netfile: consumer uses authorized software to complete and file the tax return
2. efile: authorized service providers send in the tax return from software used to
prepare the return
who must file taxes - Answer -all residents of Canadian must file a federal income tax
return for any year in which they have a balance of taxes owing
-a resident is anyone living in canada but also includes non canadians whoa re present
183 days (half a year) or more
-tax filling is only way to access income through tax benefits and credits and establish
eligibility for income tested benefits
tax brackets - Answer -both federal and provincial governments collect income tax
-amount collected depends on where tax filer lives and level of taxable income or "tax
bracket"
-marginal tax rate
-average tax rate
, marginal tax rate - Answer rate of tax calculated on the next dollar of taxable income
earned
average tax rate - Answer total tax due divided by total taxable income
federal tax rates - Answer -15% on the first $53 359 up to $106 717
-20.5% on the portion of taxable income over $106 717 up to $165 430
-26% on the portion over $165 420 up to $235 675
-29% on the portion over $165 420 up to $235 675
-33% over $235 675
manitoba tax rates - Answer -10.8% on first $36 842
-12.75% over $36 842 and including $79 625
-17.4% over $79 625
tax deductions - Answer -reduce taxable income
-do not result in a refund if the person has no income
common tax deductions - Answer -registered pension plan (RPP) contributions - shown
in box 20 of T4 slips
-registered retirement savings plan (RRSP) contributions shown on receipts
-union or professional dues usually shown in box 44 of a T4 slip
tax credits - Answer -reduce taxes payable
-non refundable and refundable
non refundable tax credits - Answer -reduce taxes payable but do not provide any
additional benefit if the tax filer doesn't have any taxable income
-reduce amount of taxes payable
-once non refundable credits equal or exceed taxes payable no further non refundable
credits are needed
-tax filers with no or very low income see limited financial value from having non
refundable credit claims
examples of non refundable tax credits - Answer -basic amount $15000
-age amount $8396
-disability tax credit $9428
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Zayla. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $8.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
75632 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now