There are four ways that investments are directly taxed in Canada: 1. Interest income – treated as fully taxed income; 2. Eligible Dividend income – treated as income multiplied by a gross-up factor (2010: 44%, 2011: 41%, 2012: 38%), and the net amount is reduced by a dividend tax credit (2010: 25.88% of actual dividend); … Continue reading How capital gains taxes impact investment decisions