Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Question 4: 10 Your client has provided you with the following information: 2019 2020 2021 Employment income $20,000 Rental income $11,000 Interest income $22,000 Royalty
Question 4: 10
Your client has provided you with the following information:
2019
2020
2021
Employment income
$20,000
Rental income
$11,000
Interest income
$22,000
Royalty income
$38,000
Earned income
$67,000
Must calculate
PA for the year
$5,000
$8,000
RRSP dollar limit
$26,500
$27,230
$27,830
Unused RRSP contribution room at year end
$2,000
Required:
What is this taxpayers RRSP deduction limit for 2020? If the taxpayer contribution $10,000 into the RRSP on December 31, 2020 did they over contribute? Why / why not?
Question 4: 10
Your client has provided you with the following information:
| 2019 | 2020 | 2021 |
Employment income |
| $20,000 |
|
Rental income |
| $11,000 |
|
Interest income |
| $22,000 |
|
Royalty income |
| $38,000 |
|
Earned income | $67,000 | Must calculate |
|
|
|
|
|
PA for the year | $5,000 | $8,000 |
|
RRSP dollar limit | $26,500 | $27,230 | $27,830 |
Unused RRSP contribution room at year end | $2,000 |
|
|
Required:
What is this taxpayers RRSP deduction limit for 2020? If the taxpayer contribution $10,000 into the RRSP on December 31, 2020 did they over contribute? Why / why not?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started