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IFIC Mutual Funds Licensing Practice Exam · Question

Which of the following statements about non-registered investment accounts is FALSE?

Contributions to non-registered accounts are not tax-deductible. While certain registered accounts (like RRSPs) offer deductibility, non-registered accounts do

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Question: Which of the following statements about non-registered investment accounts is FALSE?

Answer options:

  • Capital gains in a non-registered account are 50% taxable.
  • Interest income generated in a non-registered account is fully taxable in the year it is earned.
  • Dividends from Canadian corporations in a non-registered account are subject to dividend tax credits. ✅ Contributions to a non-registered account are tax-deductible.

Correct answer: Contributions to a non-registered account are tax-deductible.

Explanation: Contributions to non-registered accounts are not tax-deductible. While certain registered accounts (like RRSPs) offer deductibility, non-registered accounts do not. All other statements are true regarding the taxation of capital gains, interest, and dividends in non-registered accounts.

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