Question

with respect to the death of a taxpayer, which of the following is accurate? multiple choice the reserves that are normally deductible from income are deductible up to 70% in the year of death. only income from a set list of sources is accrued up until the date of death. a surviving spouse or common-law partner who is the named beneficiary of an unmatured rrsp cannot avoid tax by transferring the unmatured rrsp to their own rrsp. a tfsa will continue to exist if the surviving spouse/partner is the beneficiary of the deceased spouse's/partner's tfsa.

Answer 1

The reserves that are normally deductible from income are not deductible up to 70% in the year of death. Only income from a set list of sources is accrued until the date of death. A surviving spouse or common-law partner who is the named beneficiary of an unmatured RRSP cannot avoid tax by transferring the unmatured RRSP to their own RRSP. A TFSA will continue to exist if the surviving spouse/partner is the beneficiary of the deceased spouse's/partner's TFSA.

Step-by-step explanation:

The accurate statement with respect to the death of a taxpayer is that a surviving spouse or common-law partner who is the named beneficiary of an unmatured RRSP cannot avoid tax by transferring the unmatured RRSP to their own RRSP.

When a taxpayer dies, their RRSP becomes fully taxable on their final tax return. However, if the surviving spouse or partner is named as the beneficiary of the RRSP, the RRSP can be transferred to them tax-free if certain conditions are met.

A TFSA (Tax-Free Savings Account) will continue to exist if the surviving spouse or partner is the beneficiary of the deceased spouse's or partner's TFSA. The TFSA can be transferred to the surviving spouse or partner without any tax consequences.