Mrs Gloria Abbado is employed by Tignish Inc (TI), a public company During 2021, she reports the following income and deductions associated with her employment Gross Salary $130,000 Automobile Benefit $7,000 Stock Option Benefit (Note 1) $3,000 RPP Contributions ($6,000) Professional Dues ($1,500) Net Employment Income $132,500 Note 1 TI granted Gloria options to buy shares of the company at their trading value on the grant date During 2021, she exercised the options to acquire 1,000 shares at a price of $25 per share On the exercise date, the shares were trading at $28 per share These shares paid dividends of $400 during the year and Gloria still owned the shares on December 31, 2021 In addition to her ongoing employment, Gloria owns a house that she rents out to residential tenants Due to higher than normal costs in maintaining the property and as a result of a tenant moving out early without a replacement, a net rental loss of $12,000 was incurred for the 2021 year In 2021, Gloria disposed of the following assets Type of Asset ACB POD FMV of Asset Land sold to spouse (Gloria elected out of ITA 73(1)) $25,000 $25,000 $60,000 A stamp collection was sold to a collector from an online collector club $1,500 $2,000 N A Gloria reports the following loss carryforward amounts that she would like to use in 2021, if possible Description of disposition that gave rise the carryforward balance Amount Year the loss originally occurred A pearl necklace with an ACB of $5,000 was sold for $3,600 $700 2018 Public company shares with an ACB of $9,000 were sold for $5,000 $2,000 2016 REQUIRED Show supporting calculations and explanations for all parts It is now early 2022 Calculate Glorias Net Income for Tax Purposes (NIFTP) and Taxable Income for 2021, assuming no RRSP deduction is made State the remaining loss carryover balances, if any, at the end of 2021 and indicate the final year in which the loss carryforward can be applied Calculate Glorias 2021 RRSP Deduction Limit To do this, assume Glorias 2020 Deduction Limit was $10,000 In 2020, she contributed $7,000 and deducted $4,000 on her 2020 tax return, leaving $3,000 in undeducted contributions For earned income purposes, Glorias 2020 employment income items (including RPP contributions) were the same as in 2021, except there was no stock option benefit amount She also earned net rental income of $3,500 in 2020 TI reported a 2020 pension adjustment of $13,000 Gloria contributed $20,000 on September 1, 2021 She says to you, I think I can deduct $23,000 in 2021 my undeducted contributions from last year plus the contribution from September 1 Explain to Gloria how much she can deduct in 2021 Provide brief and specific advice analysis to her

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Mrs. Gloria Abbado is employed by Tignish Inc (TI), a public company. During 2021, she reports the following income and deductions associated with her employment:

Gross Salary $130,000

Automobile Benefit $7,000

Stock Option Benefit (Note 1) $3,000

RPP Contributions ($6,000)

Professional Dues ($1,500)

Net Employment Income $132,500

Note 1: TI granted Gloria options to buy shares of the company at their trading value on the grant date. During 2021, she exercised the options to acquire 1,000 shares at a price of $25 per share. On the exercise date, the shares were trading at $28 per share. These shares paid dividends of $400 during the year and Gloria still owned the shares on December 31, 2021.

In addition to her ongoing employment, Gloria owns a house that she rents out to residential tenants. Due to higher than normal costs in maintaining the property and as a result of a tenant moving out early without a replacement, a net rental loss of $12,000 was incurred for the 2021 year.

In 2021, Gloria disposed of the following assets:

Type of Asset	ACB	POD	FMV of Asset
Land sold to spouse (Gloria elected out of ITA 73(1)).	$25,000	$25,000	$60,000
A stamp collection was sold to a collector from an online collector club.	$1,500	$2,000	N/A

Gloria reports the following loss carryforward amounts that she would like to use in 2021, if possible:

Description of disposition that gave rise the carryforward balance	Amount	Year the loss originally occurred
A pearl necklace with an ACB of $5,000 was sold for $3,600.	$700	2018
Public company shares with an ACB of $9,000 were sold for $5,000.	$2,000	2016

REQUIRED: *Show supporting calculations and explanations for all parts*

It is now early 2022. Calculate Glorias Net Income for Tax Purposes (NIFTP) and Taxable Income for 2021, assuming no RRSP deduction is made.
State the remaining loss carryover balances, if any, at the end of 2021 and indicate the final year in which the loss carryforward can be applied.
Calculate Glorias 2021 RRSP Deduction Limit. To do this, assume:
- Glorias 2020 Deduction Limit was $10,000.
- In 2020, she contributed $7,000 and deducted $4,000 on her 2020 tax return, leaving $3,000 in undeducted contributions.
- For earned income purposes, Glorias 2020 employment income items (including RPP contributions) were the same as in 2021, except there was no stock option benefit amount. She also earned net rental income of $3,500 in 2020.
- TI reported a 2020 pension adjustment of $13,000.
Gloria contributed $20,000 on September 1, 2021. She says to you, I think I can deduct $23,000 in 2021 my undeducted contributions from last year plus the contribution from September 1. Explain to Gloria how much she can deduct in 2021. Provide brief and specific advice/analysis to her.