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True/False
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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.
True
False
2 .
The federal income tax structure is progressive in nature.
True
False
3 .
The federal income tax structure consists of four tax brackets.
True
False
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.
True
False
5 .
Excise tax, such as property tax, is considered to be a type of non-income based tax.
True
False
6 .
An inheritance is subject to income tax.
True
False
7 .
A RRSP is a tax-deferred investment.
True
False
8 .
A taxpayer can deduct interest paid on a car loan.
True
False
9 .
The marginal tax rate is the percentage of the last dollar you earn that goes toward taxes.
True
False
10 .
According to tax law, it is not possible to amend an already amended return.
True
False
11 .
A schedule is an attachment to an income tax return, on which you provide additional information regarding income and deductions.
True
False
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