Mr. Josh Hansen’s primary source of income is from employment. In 2022, his salary was $56,000.
In addition, he earned commissions of $16,000 and taxable employment benefts of $8,000. In 2022,
he made contributions to his employer's money purchase (defned contribution) RPP of $2,000. His
employer made a matching contribution of $2,000, as well as a $1,200 contribution to a DPSP.
Also in 2022, Josh had the following additional income:
Interest income $ 3,400
Eligible dividends 1,900
Royalties from a book written by Josh 6,500
Taxable capital gains 38,000
2022 losses included the following:
Rental loss $ 10,400
Allowable capital losses 9,000
2020 net capital loss balance 32,000
Josh has custody of his 7-year-old son from a former marriage and receives $14,400 in annual child
support payments. He also receives $9,000 in annual spousal support. All support payments are
received in full and on time. In 2022, Josh also paid $4,000 in deductible child care expenses.
Josh is also required to pay a total of $2,500 per month in spousal support payments to another
former spouse.
At the end of 2022, Josh had $23,000 in unused RRSP deduction room and $21,000 in undeducted
RRSP contributions. He did not claim an RRSP deduction in 2022 . Using the rules from ITA 3, calculate Josh’s 2022 net income.