Net Income with RRSP Contributions

In 2022, Mr. Jeff Singer had the following amounts of income and deductions that were

used in calculating his net income:

Employment Income Jeffs 2022 employment income was $59,000. This included

commissions of $12,000, taxable employment benefits of $6,000, and a deduction for

employment expenses of $8,000. This $8,000 amount included contributions to the

employers money purchase RPP of $1,500. Jeffs employer made a matching

contribution of $1,500 and, in addition, contributed $1,000 to a DPSP on his behalf.

Property Income Jeffs 2022 sources of property income included interest of $2,300,

eligible dividends received of $1,400, royalties of $5,000 and a rental loss of $27,200.

The royalties relate to a software application that Jeff developed on his own in a previous

year.

Capital Gains and Losses In 2022, Jeff realized taxable capital gains of $62,000 and

allowable capital losses of $6,000. In the determination of his 2022 taxable income, he

deducted a 2019 net capital loss of $56,000.

Other Income and Deductions In 2022, Jeff received $12,000 in spousal support

payments from his first wife. As he has custody of his 14-year-old son from this marriage,

he also received $11,000 in child support payments. In addition, Jeff paid $24,000 in

spousal support payments to his second wife. He had deductible child care expenses in

2022 of $5,000.

Jeff had $18,000 in unused RRSP deduction room and $20,000 in undeducted

contributions at the end of 2022. He did not claim an RRSP deduction in 2022. This was

because of advice from his brother, who read on an investment blog that this would

protect him if his RRSP investments lost value.

Required:

A. Calculate Jeffs 2022 net income ignoring any CPP implications.

B. Based on the information provided, calculate:

the maximum RRSP contribution that Jeff can claim for 2023 without incurring the

penalty tax for excess contributions.

Jeffs maximum RRSP deduction for 2023 and any remaining undeducted

contributions, assuming he makes the maximum contribution that you have

calculated.