Maria has a total income of $150,000. Her federal and provincial marginal tax rates are 29% and 13.16% respectively. She realized a capital gain of $50,000 from the sale of a non-registered investment. What is her additional combined tax liability due to this capital gain?

Question: Maria has a total income of $150,000. Her federal and provincial marginal tax rates are 29% and 13.16% respectively. She realized a capital gain of $50,000 from the sale of a non-registered investment. What is her additional combined tax liability due to this capital gain?

Answer options:

• $21,080 ✅ $10,540
• $14,500
• $6,580

Correct answer: $10,540

Explanation: The taxable capital gain is 50% of $50,000, which is $25,000. Her combined marginal tax rate is 29% + 13.16% = 42.16%. The additional combined tax liability is $25,000 * 42.16% = $10,540.