Final answer:
The individual can apply non-capital losses and farm losses against employment income, but not net capital losses. The maximum losses carry forward claimed in 2023 would equal the employment income, meaning option c. $50,000 is correct.
Step-by-step explanation:
An individual had employment income in 2023 of $50,000. They had loss carry forward balances as follows: net capital losses (NCL) of ($20,000); non-capital losses (NONCL) of ($22,000); and farm losses from full-time farming (FL) of ($24,000). When determining the maximum amount of losses carry forward they can claim in 2023, it is important to look at the taxation laws that govern how these losses may be applied against current year income.
The net capital losses can only be applied against capital gains, not against employment income. The non-capital losses and farm losses can be applied against any type of income. Assuming there are no capital gains in the current year to offset the NCL, and given the total employment income is $50,000, the individual can utilize the non-capital losses up to the amount of their employment income.
This means that the maximum amount of losses the individual can claim against their employment income is limited to their total income of $50,000, which would be the total of the non-capital loss and part of the farm losses until the income amount is zeroed out.
Therefore, the correct answer is:
c. $50,000