Question
During 2019, Mr. Robert Sparks had the following amounts of income and deductions on his tax return: Net employment income $ 85,000 Income (Loss) from
During 2019, Mr. Robert Sparks had the following amounts of income and deductions on his tax return:
Net employment income $ 85,000
Income (Loss) from business 16,000
Interest income 6,000
Taxable capital gains 7,500
Allowable capital losses (10,500)
Child care cost ( 3,000)
Support Payments Paid (15,500)
Robert is a member of a money purchase Registered Pension Plan (RPP) in which he had contributed $1,000 and his employer has contributed $1,500.
Required:
Calculate the maximum deductible contribution Robert Sparks can make to his RRSP for the 2020 tax year. Show your work including how you calculated Roberts earned income.
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