Calculating net rental income for the current year

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Q1. During 2019, Mr. Orlando had net employment income of $35,000, received spousal support payments of $8,000 as well as child support payments for his 10 year old daughter of $12,000, received an inheritance of $50,000 and had a net rental loss of $2,000. His Earned Income for RRSP purpose for the year 2019 would be:

A. $33,000

B. $103,000

C. None of the above.

D. $43,000

E. $41,000

F. $35,000

G. $53,000

Q2. Saul owns two residential rental properties. Both properties are in separate CCA classes: Property A is in Class 1 with a maximum CCA rate of 4%, while Property B is in Class 3 with a CCA rate of 5%. At the beginning of the year, Property A has a UCC balance of $1,500,000 and Property B has a UCC balance of $500,000. Property A had net rental income before CCA of $40,000, while Property B had a net rental loss before CCA of $27,000. What is the maximum amount of CCA Saul would be allowed to deduct in calculating net rental income for the current year?

A. $13,000.

B. $60,000.

C. Nil - no CCA can be deducted on rental properties.

D. $27,000.

E. $85,000.

F. $43,000.

G. $40,000.

H. $25,000.

Reference no: EM132634906

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