Question
Exercise 4: During 2020, Mr. Black has taxable capital gains of $23,650, net rental income of $6,530, pays spousal support of $18,000, and has net
Exercise 4: During 2020, Mr. Black has taxable capital gains of $23,650, net rental income of $6,530, pays spousal support of $18,000, and has net employment income of $75,600. Based on his RPP contributions of $2,400 and the matching contributions made by his employer, his employer reports a 2019- pension adjustment of $4,800. Mr. Black has unused RRSP Deduction Room carried forward from 2019 of $10,750. Also, at this time, his RRSP contains undeducted contributions of $6,560. During 2020, he makes contributions to his RRSP of $13,200. Determine Mr. Blacks maximum RRSP deduction for 2020. Assuming he deducts his maximum, determine the amount of any unused RRSP Deduction Room that he will have available at the end of 2020, and indicate whether he has any undeducted contributions remaining at the end of 2020.
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