Melanie,a homeowner,has mortgage interest of $3000,RRSP contributions of $1500,and charitable contributions of $500.According to her filing status,a basic personal amount of $11 635 is allowed.How much should Melanie deduct on her tax return?
A)Her only deduction is the $1500 RRSP contribution.
B)She can deduct $13 135,her basic personal amount and her RRSP contribution.
C)She can deduct $13 635,her basic personal amount,charitable donation and her RRSP contribution.
D)She has deductions of $2000 for her RRSP and charitable donation.

Question

Quizplus · Accepted Answer

Mortgage interest is not deductible for tax purposes in Canada. Melanie can only deduct her RRSP contributions of $1500. The basic personal amount is a non-refundable tax credit, not a deduction.

Melanie,a Homeowner,has Mortgage Interest of $3000,RRSP Contributions of $1500,and Charitable