AFM121 Chapter Notes - Chapter 25: Tax Efficiency, Registered Retirement Savings Plan, Tax Rate
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From owning shares of company, and selling at a higher/lower price. Each of these types of income is treated differently by the canada revenue agency (cra) Progressive tax system: pay more as you go up. Different levels of income are taxed at different rates. 15% on the first ,282 of taxable income. Primarily from coupon payments, not taxed on a cash basis. Based on how much interest income you accrued (change in price of a discount bond) 365 (can use excel to count days: not based on cash received, includes changes in the price (pv) of a discount bond. Often referred to as paying the same marginal tax rate as employment income . You owned ,000 of face value of a 5% coupon bond with payments on may 31 st and nov 30th each year. The bond matured on nov 30th 2015, and was purchased at face value. For 2015, you will have interest income of: o.