You are a CPA and Uma is your client. Uma is a divorced single mother with 2 children, Ravi who is 8 and Usha who is 4. She sent you the following questions by email yesterday.

Hi CPA,

How are you? I hope you are enjoying the summer! I have a couple of questions for you.

1. I am not sure how much I can contribute to my RRSP for 2021. I would like to make my contribution now so I don't forget! Could you let me know how much I can contribute?

2. As you know, I worked from home for most of 2021 because of the pandemic. When I needed it, my mom looked after the kids for free. Now that things are starting to reopen, effective August 1, I will be back to working from the office most of the time. Frankly, I am ecstatic that I won't have to juggle working from home and remote schooling for Ravi in the fall! Mom can't commit the time needed to look after Usha full time. I have luckily found a daycare that can accommodate Usha and provide after school care for Ravi when he goes back to school in September. It looks like this will cost me about $12,000 for August - December - ouch! I am wondering how much of this, if any, I can deduct. A tax deduction would help. By the way, Ravi is going to overnight camp for 3 weeks in August - it's costing me $2,000 per week!

I know you have my 2020 income and expense amounts, but I think you will need me to give you my 2021 amounts to answer my questions. So, here are my 2021 estimated numbers with the 2020 numbers for reference.

2020 2021

Salary and taxable benefits $105,000 $95,000

Employment deductions - professional dues (1,200) (1,000)

Child support payments from the ex 36,000 36,000

Spousal support payments from the ex 24,000 24,000

Rental property net income/(loss) 12,000 ( 2,000)

Cash dividends from public companies 10,000 8,000

Capital gains (this is a real guess!) 5,000 1,000

Interest expense on loan to buy shares (2,000) ( 2,000)

Pension adjustment 4,500 4,000

I know that because these are estimated numbers, what you tell me is subject to change. I didn't have any RRSP contribution room carry forward at the end of 2020 according to my assessment.

Best,

Uma

Provide Uma with the answers to her questions, showing all calculation