Which of the following is FALSE regarding the Tax Free Savings Account (TFSA)? a. There is no mandatory age by which a TFSA must be wound up O b. Capital gains earned within TFSAs are not taxed c. Any unused amounts not contributed in a year may be carried forward indefinitely to future years O d. TFSA contributions are tax deductible Which of the following is not classified as a special reduction for an individual for taxation purposes? a. Stock options O b. Charitable donations c. Losses not utilized in other years d. Lifetime capital gain deduction Which of the following does not correctly describe a condition for the deductibility of moving expenses? a. The new residence must be at least 40 kilometres closer to the new work location than the previous residence O b. Moving expenses are deductible if incurred to attend a university or other post-secondary school O c. Moving expenses are limited to employment income at the new location in the year of the move d. Moving expenses are deductible if incurred for relocation to commence employment What happens if an individual does not convert their registered retirement savings plan (RRSP)) to a pension vehicle by December 31 of the year they turn 71? O a. The RRSP is automatically converted into a life insurance policy O b. The assets stay in the RRSP and the RRSP pays tax on any income it earns O c. The full amount of the RRSP is included in the income of the owner of the RRSP d. The RRSP is automatically converted into a registered retirement income fund (RRIF) Which of the following types of income would be included in earned income when calculating an individual's registered retirement savings plan (RRSP contribution limit? O a. Interest income O b. Dividend income O c. Capital gains O d. Rental income Which of the following is a correct statement about tax free savings account (TFSA) contributions in 2020? O a. The contribution limit is reduced by amounts contributed to a registered retirement savings plan (RRSP) or registered education savings plan (RESP) b. An individual can contribute up to $6,000 to each of their own and their spouse's TFSA Oc. The contribution is limited to 18 % of the individual's earned income in the prior year O d. If they fail to make the contribution the opportunity is permanently lost Which of the following types of losses can be carried forward indefinitely? a. Restricted farm losses b. Farm losses O c. Non-capital losses O d. Business investment losses Which of the following would be a valid means of reducing expenses in order to utilize losses that may expire? a. Choose not to record ending inventory at year end O b. Choose not to record prepaid expenses at year end Oc. Choose not to claim capital cost allowance Od. Choose not to accrue expenses payable at year end For decision-making purposes, which of the following is the most important tax credit? a. Charitable donations O b. Age amount Oc. Spouse or equivalent to spouse d. Dividend tax credit Upon the death of a taxpayer, which of the following statements is true? O a. Capital property that is left to a spouse is deemed to be sold at cost, and all other capital property is deemed to be sold at market value O b. Capital property that is left to a spouse is deemed to be sold at market value, and all other capital property is deemed to be sold at cost O c. All property left to a spouse and to others is deemed to be sold at cost O d. All property left to a spouse and to others is deemed to be sold at market value