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CSI Financial Planning II (FPII) Sample Questions:
Roy gifted his nephew Charles, age 16, shares for his birthday. The managed portfolio will generate both dividends, and capital gains and losses. What will be Roy's future tax implications, with respect to this transfer, until Charles reaches the age of majority?
- A. No gains, losses or income are attributed to Roy.
- B. Dividend income is attributed to Roy.
- C. Capital losses are attributed to Roy.
- D. Capital gains are attributed to Roy.
Correct Answer: B 🗳️
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Julien will be making a spousal Registered Retirement Savings Plan contribution for his wife. When should Julien make this contribution, in order to lessen the impact of the three-year rule?
- A. December.
- B. February.
- C. March.
- D. January.
Correct Answer: A 🗳️
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What is the tax treatment on disability assistance payments for Registered Disability Savings Plans?
- A. Disability assistance payments are not taxable income.
- B. Disability assistance payments are taxed on the grant and income earned portions.
- C. Disability assistance payments reduce government-funded disability benefits and tax credits.
- D. Disability assistance payments are fully taxable based in the hands of the recipient.
Correct Answer: B 🗳️
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Fatima would like to make a prepayment on her mortgage and her bank advises her that she has a closed mortgage so there will be a penalty, using the three months interest formula. Calculate the penalty, assuming that Fatima's mortgage rate is 5% with 36 months remaining and there is $250,000 balance outstanding on the mortgage.
- A. $1,042.
- B. $3,125.
- C. $4,167.
- D. $7,493.
Correct Answer: B 🗳️
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For spousal claims relating to joint family ventures, what does a proprietary award grant?
- A. The right of first refusal for purchasing an asset.
- B. Ownership interest in an asset.
- C. A lump-sum monetary payment.
- D. An equal split of future income generated by an asset.
Correct Answer: B 🗳️
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