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Tax Planning and Strategies
True/False

1 .       The present income tax system first appeared in 1917 as a means of financing efforts in World War I. 

 
 


2 .       The federal income tax structure is progressive in nature.  

 
 


3 .       The federal income tax structure consists of four tax brackets.  

 
 


4 .       At the present time, the entire capital gain on a home is tax free, provided it was never used for anything other than being the place where you lived. 

 
 


5 .       Excise tax, such as property tax, is considered to be a type of non-income based tax.  

 
 


6 .       An inheritance is subject to income tax.  

 
 


7 .       A RRSP is a tax-deferred investment.  

 
 


8 .       A taxpayer can deduct interest paid on a car loan.  

 
 


9 .       The marginal tax rate is the percentage of the last dollar you earn that goes toward taxes. 

 
 


10 .       According to tax law, it is not possible to amend an already amended return. 

 
 


11 .       A schedule is an attachment to an income tax return, on which you provide additional information regarding income and deductions.  

 
 






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