Question
Lorin has $3,000 of elligible dividend income and $12,000 of capital gains in her equity investment in 2021. Her marginal tax rate is 43.41% and
Lorin has $3,000 of elligible dividend income and $12,000 of capital gains in her equity investment in 2021. Her marginal tax rate is 43.41% and her effective tax rate is 32.23% for the same year. Assume that she lives in Toronto, is elligible for dividend tax credit and the gross-up rate for elligible dividends is 38%. Also, the total (federal and provincial combined) dividend tax credit rate is 25.02% for Ontario residents. Calculate the amount of taxes she'll pay on her dividend income and capital gains combined from her equity investment. (Do not use the $ sign. If your answer is $12,345.67, enter 12345.67).
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