Question
PLEASE ANSWER ASAP !!!! 20) Gary pays $1,000 a month to his former spouse, $700 of which is to support their child, as per a
PLEASE ANSWER ASAP !!!!
20) Gary pays $1,000 a month to his former spouse, $700 of which is to support their child, as per a court ordered agreement and on a regular, periodic basis. Which of the following applies to Gary for tax purposes?
A) Gary can deduct the full payments. B) Gary can deduct the payments in support of his former spouse. C) Gary can deduct the payments in support of his child. D) Gary cannot deduct any of the payments.
21) Investing in spousal RRSPs
A) allows for income splitting when the contributor turns 71. B) allows the annuitant spouse to claim the RRSP deduction and the contributing spouse to be taxed upon withdrawal. C) allows for the contributing spouse to claim the RRSP deduction and the annuitant spouse to claim the income. D) is not allowed by the general anti-avoidance rules.
24) Padma had the following capital gains during the current year: Sale of vacant land $40,000, Sale of shares of a public corporation $20,000, and the sale of qualified small business corporation $200,000. She has never used any lifetime capital gain exemption before. Padma's CNIL balance is 0 and she has no loss carryovers. How much will her capital gains deduction be?
A) $100,000 B) $260,000 C) $130,000. D) $200,000
25) Allison has taxable income of $75,500 in 2021. What is Allison's federal tax payable before tax credits?
A) $11,325 B) $10,710 C) $12,781 D) $15,478
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