Monir and Jackie, both in their 40s, own a new 2-story house in Pointe Saint-Charles. Jackie is expecting their first child in September. Monir is the co-owner of a real estate company and receives income in the form of dividends from his share ownership. Jackie is a salaried employee of the company with the usual deductions at source. Jackie earned $76,000 in salary and $7,500 in bonuses in 2021. Monir received a $2.00 dividend per share on his 200,000 shares. Because the company is a Canadian controlled private corporate (CCPC), his dividends are non-eligible. Jackie made $10,000 of RRSP contributions throughout 2021, and a $6,000 TFSA contribution in December. Monir's income is not considered to be earned income for determination of the RRSP contribution limit, thus his only contribution was to his TFSA of $6,000, also in December. Monir purchased 2,000 shares of the Royal Bank at $105 early in 2021, and sold them later in 2021 for $135 per share. He also purchased 5,000 share of iShares Global Clean Energy ETF, which he later sold for a capital gain of $32,400. The ETF was held in his TFSA, while the Royal Bank shares were held in a non-registered account. Monir also Page 5 of 13 incurred a small non-registered capital loss of $5,250 on some long-term bonds he had purchased. Monir had major dental work done in 2021 amounting to $25,000. Their other medical expenses were negligible. + Part 2 (2 marks 1 mark each) I. Both Monir and Jackie made their TFSA contributions in December. What would you say to them about the timing of this contribution? II. Assume Monir has maxed out his TFSA. If he had withdrawn $5,000 on December 31, 2021, what would have been his TFSA contribution room as of January 1, 2022? Recommendation Contribution room calculation Part 2(1) Part 2(ii) J Monir and Jackie, both in their 40s, own a new 2-story house in Pointe Saint-Charles. Jackie is expecting their first child in September. Monir is the co-owner of a real estate company and receives income in the form of dividends from his share ownership. Jackie is a salaried employee of the company with the usual deductions at source. Jackie earned $76,000 in salary and $7,500 in bonuses in 2021. Monir received a $2.00 dividend per share on his 200,000 shares. Because the company is a Canadian controlled private corporate (CCPC), his dividends are non-eligible. Jackie made $10,000 of RRSP contributions throughout 2021, and a $6,000 TFSA contribution in December. Monir's income is not considered to be earned income for determination of the RRSP contribution limit, thus his only contribution was to his TFSA of $6,000, also in December. Monir purchased 2,000 shares of the Royal Bank at $105 early in 2021, and sold them later in 2021 for $135 per share. He also purchased 5,000 share of iShares Global Clean Energy ETF, which he later sold for a capital gain of $32,400. The ETF was held in his TFSA, while the Royal Bank shares were held in a non-registered account. Monir also Page 5 of 13 incurred a small non-registered capital loss of $5,250 on some long-term bonds he had purchased. Monir had major dental work done in 2021 amounting to $25,000. Their other medical expenses were negligible. + Part 2 (2 marks 1 mark each) I. Both Monir and Jackie made their TFSA contributions in December. What would you say to them about the timing of this contribution? II. Assume Monir has maxed out his TFSA. If he had withdrawn $5,000 on December 31, 2021, what would have been his TFSA contribution room as of January 1, 2022? Recommendation Contribution room calculation Part 2(1) Part 2(ii) J
