Question
In 2019, Matts Net Income For Tax Purposes was $166,000. This was made up of net employment income of $150,000 (after the deduction of $5,000
In 2019, Matts Net Income For Tax Purposes was $166,000. This was made up of net employment income of $150,000 (after the deduction of $5,000 in RPP contributions), interest income of $1,500, grossed up dividends of $2,500, a net rental loss of $5,000, royalties on a book written by his father a year ago of $2,000 and net business income of $15,000. 6. At the end of 2019, Matts Unused RRSP Deduction Room was $6,700 and he had no undeducted contributions. His employer reported that he had a 2019 Pension Adjustment of $10,000.
Calculate Matt's maximum deductible RRSP contribution for 2020.
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