Mr. Bond works with MI-5 Ltd. On December 31, 2022 Mr. Bond expected his 2022 income for
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Question:
Mr. Bond works with MI-5 Ltd. On December 31, 2022 Mr. Bond expected his 2022 income for tax purposes to be as follows:
Employment Income | $54,000 |
Employee stock option benefits | $8,000 |
Income from carrying on a business | $21,000 |
Taxable Capital gains | $5,000 |
Losses from rental of apartment | (5,800) |
Royalty income from books written by Mr. Bond | 10,200 |
Interest income | 18,000 |
Total income | $110,400 |
Additional Information
- Bond's 2022 employment income is net of an RPP contribution of $7,300. His pension adjustment from 2022 was $13,000. He anticipates a pension adjustment of $15,000 in 2023. Mr. Bond has always in the past contributed less than was required for RRSP.
- Bond paid alimony payment of $12,000 during 2022 to the former Mrs. Bond.
- At the end of 2022 Mr. Bond has unused RRSP deduction room from prior years of $8,900.
Mr. Bond has asked you to do the following:
- Determine the maximum RRSP deduction that Mr. Bond can make for the 2023 taxation year. Remember to show all your work to get full marks.
- What additional planning step would you advise him to take in connection with his RRSP in 2023?
Related Book For
Introduction To Federal Income Taxation In Canada
ISBN: 9781554965021
33rd Edition
Authors: Robert E. Beam, Stanley N. Laiken, James J. Barnett
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