Which of the following will provide the lowest amount of after-tax income for an individual in the top federal tax bracket?
A)$100 of interest income from Canadian bonds
B)$100 of capital gains from Canadian stocks
C)$100 of non-eligible dividends from Canadian corporations
D)$100 of eligible dividends from Canadian corporations

Question

Quizplus · Accepted Answer

Interest income is fully taxable at the individual's marginal tax rate, which is the highest for those in the top federal tax bracket, resulting in the lowest after-tax income compared to capital gains and dividends, which benefit from preferential tax treatments.

Which of the Following Will Provide the Lowest Amount of After-Tax