[RFC124] - Final Exam Guide - Everything you need to know! (48 pages long)

• School: Seneca College
• Department: Business Administration - Financial Planning
• Course: Business Administration - Financial Planning RFC124
• Professor: Roshan Singh

Document Summary

Rfc124 - taxation of life insurance - week 10 nov 10. Assignment wants to see a letter and proof of what they said. Agenda: exempt and non-exempt, last acquired, adjusted costs basis, taxation on. Basics: canadian life insurance death benefits are 100% tax free to the beneficiary, premiums are paid with after-tax dollars, exceptions. If the banks make it a requirement for a loan is to get life insurance, you can deduct the costs of that as a personal expense. Portion registered as rrsp: only policies with accumulated values are subject to tax. If you had a term insurance policy and you got rid of it, are there any, no cumulative value. Exempt/non-exempt: december 1, 1982 tax status changed, pre december 2, 1982 policies (cid:862)old ta(cid:454) (cid:396)ules(cid:863) Purchase an annuity and spread tax liability. (cid:862)g(cid:396)a(cid:374)dpa(cid:396)e(cid:374)t(cid:863) status (so(cid:373)e e(cid:454)e(cid:373)ptio(cid:374: post december 1, 1982 (cid:862)ne(cid:449) ta(cid:454) (cid:396)ules(cid:863, means exempt or not exempt for tax each year.