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At the end of 2019, Mr. Meil has unused RRSP seduction room of $26,000. In addition, he has uneducated contributions of $4,000. For the test
At the end of 2019, Mr. Meil has unused RRSP seduction room of $26,000. In addition, he has uneducated contributions of $4,000.
For the test ending December 31, 2019, Mr. Mei has the following sounds of income and deductions under the various subdivision of Division B of the income tax act:
Net employment income: 57,000 Eligible dividend received: 8,000 Subdivision e deductions (child care): (6,500)Taxable capital gains: 7,000 Allowable capital losses: (11,000)Net rental loss: (2,000)
For the test ending December 31, 2019, Mr. Mei has the following sounds of income and deductions under the various subdivision of Division B of the income tax act:
Net employment income: 57,000 Eligible dividend received: 8,000 Subdivision e deductions (child care): (6,500)Taxable capital gains: 7,000 Allowable capital losses: (11,000)Net rental loss: (2,000)
Required:
a) Calculate Mr. Meli's 2019 net income tax purposes. In addition, indicate any carry overs available up him at the end of the year.
b) For each of the following independent cases, calculate- the maximum RRSP contribution Mr. Meli can make for 2020 without incurring a penalty- Mr Meli's maximum RRAP deductions for 2020, assuming that be makes the maximum contribution you have calculated- the amount, if any, of undeducted RRSP contributions, assuming her deducts his maximum for 2020.
Case 1: During 2019, Me Meli is a member of s money purchase RRP in which he has contributed $1,000 and his employer has contributed $1,500. He is also a member of a deferred profit sharing plan to with his employer has contributed $3,000.
Case 2: During 2019, he is a member of a DPSP in which his employer contributed $4,500 per employee. His employer does not sponsor an RPP.
Case 1: During 2019, Me Meli is a member of s money purchase RRP in which he has contributed $1,000 and his employer has contributed $1,500. He is also a member of a deferred profit sharing plan to with his employer has contributed $3,000.
Case 2: During 2019, he is a member of a DPSP in which his employer contributed $4,500 per employee. His employer does not sponsor an RPP.
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ANSWERS a Mr Melis net income for tax purposes for 2019 is 66000 He has no carryovers available to h...Get Instant Access to Expert-Tailored Solutions
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