Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Questions 66 - 70 are based on the Salim and Lathika Hussein case study Salim and Lathika Hussein have been married for two years. Salim

image text in transcribed
Questions 66 - 70 are based on the Salim and Lathika Hussein case study Salim and Lathika Hussein have been married for two years. Salim is 47 years old; Lathika is 42 years of age. Lathika is a chartered accountant and earns a salary of $128,000. Salim is a bus drive for city transit and earns a salary of $62,500. His salary last year was $60,200. Currently, Salim and Lathika live in an apartment however, they are saving in the hopes of purchasing their own home in the near future. When they do make the purchase, the property will be registered in both names as joint tenants. Lathika did own her own home in partnership with her ex-husband during her previous marriage however, that property was sold three years ago as part of her divorce settlement. Salim has never owned a home that he has used as his principal residence. Lathika has an RRSP to which she makes regular contributions. There was however a period of four years during which she did not contribute the maximum amount permitted and consequently, she has accumulated a carryforward of $19,400. Lathika's RRSP has a current market value of $295,000. Assume the RRSP contribution Imit for last year was $26,230 and the limit for this year is $26,500. Lathika is a member of her company's defined penefit registered pension plan. The RPp is a bestearnings plan where a 1.5% unit percentage is applied to the average of the best five years of pensionable service. Salim and Lathika have a joint non-registered investment account with a fair market value of $86,000. Earlier this year, Salim and Lathika purchased a townhouse which they use strictly as a rental property. The townhouse is also registered in both names as joint tenants. Based on her contribution room for this year, Lathika intends to contribute the maximum amount permissible to her RRSP. Assuming this year is a leap year, what Athe LATEST date Lathika can make her contribution such that she can claim the full amount as an RRSP deduction on her income tax return for this year? a) February 29 th of this year b) December 31st of this year c) March 1st of next year d) April 30 th of next year

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Understanding Terrorist Finance

Authors: T. Wittig

2011th Edition

0230291848, 978-0230291843

More Books

Students also viewed these Finance questions

Question

Examine the current research on copycat (contagion effect) crime.

Answered: 1 week ago