Assume that the prescribed rate for each quarter last year was 4%. Gerry received a loan from his employer of $60,000 at2%, which he put towards a rental property he purchased for $120,000. He paid the balance in cash. What was his taxablebenefit last year as a result of the loan that he obtained from his employer?a) $0b) $600c) $1,200d) $2,400Alan Peterson made a $2,000 RRSP contribution this year, and his marginal tax rate is 29%. Next year, Alan expects to geta significant raise, such that his marginal tax rate will increase to 43%. The Income Tax Act allows him to deduct his RRSPcontribution this year, or to carry the deduction forward to future years. When should he claim the deduction to optimizethe tax benefits?a) He should claim the deduction this year.b) He should claim the deduction next year.c) It does not matter when he claims the deduction because it will result in the same tax reduction in either year.d) He should split the deduction between his tax returns for this year and next year.Avi is a highly-skilled and well-paid tool and die maker for a private corporation. Since he is already in the top marginal taxbracket, he wants to explore the option of receiving some non-taxable benefits with his employer. Which of the followingbenefits would not be taxable to Avi?a) The amount Avi is reimbursed by his employer for tuition expenses for a long-distance MBA program.b) The value of the personal financial planning services that the company provides free of charge to allemployees.c) The premiums that Avi's employer pays on his behalf to a group life insurance plan.d) The reasonable automobile allowance per kilometre that Avi's employer pays Avi for use of his personalvehicle for business purposes.Valerie owns a home-based technical writing business as a sole proprietor. She paid $20,000 to her editorial assistant,$5,000 to her son as her computer technician and $30,000 to herself as salary. How much can she deduct as a businessexpense on her income tax return?a) $0b) $20,000c) $25,000d) $55,000

Here asked for Multi question we will solve for 1st question as per the guidelines. If you need…

Assume that the prescribed rate for each quarter last year was 4%. Gerry received a loan from his employer of $60,000 at 2%, which he put towards a rental property he purchased for $120,000. He paid the balance in cash. What was his taxable benefit last year as a result of the loan that he obtained from his employer? a) SO b) $600 c) $1,200 d) $2,400

Assume that the prescribed rate for each quarter last year was 4%. Gerry received a loan from his employer of $60,000 at 2%, which he put towards a rental property he purchased for $120,000. He paid the balance in cash. What was his taxable benefit last year as a result of the loan that he obtained from his employer? a) SO b) $600 c) $1,200 d) $2,400

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter6: Deductions And Losses: In General

Section: Chapter Questions

Problem 55P

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