IFIC Mutual Funds Licensing Practice Exam · Question
A client inherited a sum of money and wants to invest it in a non-registered account. Which of the following income types from this investment would be considered 50% taxable for income tax purposes?
In Canada, only 50% of a capital gain is taxable. Interest income is 100% taxable, eligible dividends are grossed up then a tax credit applied, and return of ca
Start free practice for IFIC Mutual Funds Licensing Practice Exam
355 questions · no signup required · 40 free questions per day
Question: A client inherited a sum of money and wants to invest it in a non-registered account. Which of the following income types from this investment would be considered 50% taxable for income tax purposes?
Answer options:
- Interest income
- Eligible dividends
- Return of capital ✅ Capital gains
Correct answer: Capital gains
Explanation: In Canada, only 50% of a capital gain is taxable. Interest income is 100% taxable, eligible dividends are grossed up then a tax credit applied, and return of capital reduces the adjusted cost base and is not immediately taxable.
Start free practice for IFIC Mutual Funds Licensing Practice Exam
355 questions · no signup required · 40 free questions per day
More about IFIC Mutual Funds Licensing Practice Exam
More for IFIC Mutual Funds Licensing Practice Exam candidates
Ready to practice?
Free, no signup required. Build a wrong-question list as you go.
Start Free IFIC Mutual Funds Licensing Practice Exam Practice →Related courses
Other Canadian certifications candidates often prepare for alongside this one.