Which form of investment income is taxed at an investor’s marginal tax rate?
A.
Capital gains
B.
Capital losses
C.
Canadian dividend income
D.
Foreign dividend income
The Answer Is:
D
This question includes an explanation.
Explanation:
Foreign dividend income is taxed at the investor’s marginal tax rate without the benefit of a dividend tax credit, unlike Canadian dividend income, which qualifies for a tax credit. The feedback from the document states:
"Foreign dividend income is not eligible for any dividend tax credit, and is taxed at an investor’s marginal tax rate."
[Reference: Chapter 6 – Tax and Retirement PlanningLearning Domain: The Know Your Client Communication Process, , , ]
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