Each family member in the Wise family received a large unexpected inheritance from a long-lost uncle on May 1, 2021. They are still in shock about this nheritance and want to use the money wisely. They have all agreed that the smartest financial move would be for each of them to open Tax-Free Savings Accounts (TFSAs) and to maximize their contributions. To date, no family member has made any TFSA contributions except for Steve who contributed $5,000 a the beginning of this year. They have asked you to help them determine the maximum amount permitted under the TFSA rules and they will then each contribute from their inheritance. (Hint: consider carryforward balances and contributions in 2021). Steve (father) turned 55 on April 10, 2021 Stella (mother) turns 48 on May 5, 2021 Anita (Steve's mother who lives with them) turns 71 on December 10, 2021 John (son) turned 24 on March 2, 2021 Twins (born minutes apart): Alley (daughter) turned 18 on December 31, 2020, and Joseph (son) turned 18 on January 1, 2021 Eva turns 17 on November 1, 2021 Years A Year started 2009-2012 2013-2014 2015 $283,000 B $290,000 C $284,000 Tax-Free Savings Account (TFSA): Annual Limits Annual Limit Years 2016-2018 2019-2020 2021 D $278,000 E $289,000 $5,000/year $5,500/year $10,000/year Annual Limit $5,500/year $6,000/year $6,000/year
Each family member in the Wise family received a large unexpected inheritance from a long-lost uncle on May 1, 2021. They are still in shock about this nheritance and want to use the money wisely. They have all agreed that the smartest financial move would be for each of them to open Tax-Free Savings Accounts (TFSAs) and to maximize their contributions. To date, no family member has made any TFSA contributions except for Steve who contributed $5,000 a the beginning of this year. They have asked you to help them determine the maximum amount permitted under the TFSA rules and they will then each contribute from their inheritance. (Hint: consider carryforward balances and contributions in 2021). Steve (father) turned 55 on April 10, 2021 Stella (mother) turns 48 on May 5, 2021 Anita (Steve's mother who lives with them) turns 71 on December 10, 2021 John (son) turned 24 on March 2, 2021 Twins (born minutes apart): Alley (daughter) turned 18 on December 31, 2020, and Joseph (son) turned 18 on January 1, 2021 Eva turns 17 on November 1, 2021 Years A Year started 2009-2012 2013-2014 2015 $283,000 B $290,000 C $284,000 Tax-Free Savings Account (TFSA): Annual Limits Annual Limit Years 2016-2018 2019-2020 2021 D $278,000 E $289,000 $5,000/year $5,500/year $10,000/year Annual Limit $5,500/year $6,000/year $6,000/year
Chapter6: Business Expenses
Section: Chapter Questions
Problem 63P
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Transcribed Image Text:Each family member in the Wise family received a large unexpected inheritance from a long-lost uncle on May 1, 2021. They are still in shock about this
inheritance and want to use the money wisely. They have all agreed that the smartest financial move would be for each of them to open Tax-Free Savings
Accounts (TFSAs) and to maximize their contributions. To date, no family member has made any TFSA contributions except for Steve who contributed $5,000 at
the beginning of this year. They have asked you to help them determine the maximum amount permitted under the TFSA rules and they will then each contribute
from their inheritance. (Hint: consider carryforward balances and contributions in 2021).
Steve (father) turned 55 on April 10, 2021
Stella (mother) turns 48 on May 5, 2021
Anita (Steve's mother who lives with them) turns 71 on December 10, 2021
John (son) turned 24 on March 2, 2021
Twins (born minutes apart): Alley (daughter) turned 18 on December 31, 2020, and Joseph (son) turned 18 on January 1, 2021
Eva turns 17 on November 1, 2021
Years
A
Year started 2009-2012
2013-2014
2015
$283,000
B $290,000
C $284,000
Tax-Free Savings Account (TFSA): Annual Limits
Annual Limit
Years
2016-2018
2019-2020
2021
D $278,000
E $289,000
$5,000/year
$5,500/year
$10,000/year
Annual Limit
$5,500/year
$6,000/year
$6,000/year
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