DD's actual travelling and car expenses were: Meals Accommodations Other travel costs reimbursed by company Car...
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DD's actual travelling and car expenses were: Meals Accommodations Other travel costs reimbursed by company Car expenses (9,000 kilometres were for business, a total of 16,000 kilometres driven): Gasoline Maintenance Auto accident costs while on business trip Insurance Licence Interest paid on car loan (see note 4) Capital Cost Allowance for car $ 1,700 800 1,600 1,800 90 300 14,175 Note 2 OPP Limited paid 50% of the premium to Regal Assurance for income protection payments. During 2021, DD received $15,000 in periodic payments in respect of an eight-week illness. $ 11,250 23,750 6,000 Note 3 Although DD started to work for OPP Limited in January 2021, the family did not move to Calgary from Halifax until February 28, 2021. The company paid all the moving costs. REQUIRED: Note 4 DD obtained two loans from OPP Limited as part of the employment contract: a) Loan of $150,000, dated July 1, 2021, to acquire a new home in Calgary. The loan bears annual interest of 2% and is repayable over a 25-year period in annual instalments on the anniversary date of July 1. Interest is payable on the same date. b) Loan of $10,000 dated January 1, 2021, to assist in the acquisition of a car acquired in early January 2021 for $35,000 (excluding the 5% GST; no Provincial Sales Tax (PST) in Alberta) to be used in connection with DD's duties of employment. The loan bears interest at 3% and is repayable over the next three years in equal annual instalments. Interest is payable on December 31 each year. DD paid the interest for 2021 on December 31, 2021. The prescribed interest rate is 4% for all quarters. 1) Calculate DD's net employment income for 2021 (Division B). DD's actual travelling and car expenses were: Meals Accommodations Other travel costs reimbursed by company Car expenses (9,000 kilometres were for business, a total of 16,000 kilometres driven): Gasoline Maintenance Auto accident costs while on business trip Insurance Licence Interest paid on car loan (see note 4) Capital Cost Allowance for car $ 1,700 800 1,600 1,800 90 300 14,175 Note 2 OPP Limited paid 50% of the premium to Regal Assurance for income protection payments. During 2021, DD received $15,000 in periodic payments in respect of an eight-week illness. $ 11,250 23,750 6,000 Note 3 Although DD started to work for OPP Limited in January 2021, the family did not move to Calgary from Halifax until February 28, 2021. The company paid all the moving costs. REQUIRED: Note 4 DD obtained two loans from OPP Limited as part of the employment contract: a) Loan of $150,000, dated July 1, 2021, to acquire a new home in Calgary. The loan bears annual interest of 2% and is repayable over a 25-year period in annual instalments on the anniversary date of July 1. Interest is payable on the same date. b) Loan of $10,000 dated January 1, 2021, to assist in the acquisition of a car acquired in early January 2021 for $35,000 (excluding the 5% GST; no Provincial Sales Tax (PST) in Alberta) to be used in connection with DD's duties of employment. The loan bears interest at 3% and is repayable over the next three years in equal annual instalments. Interest is payable on December 31 each year. DD paid the interest for 2021 on December 31, 2021. The prescribed interest rate is 4% for all quarters. 1) Calculate DD's net employment income for 2021 (Division B).
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Related Book For
Introduction To Federal Income Taxation In Canada
ISBN: 9781554965021
33rd Edition
Authors: Robert E. Beam, Stanley N. Laiken, James J. Barnett
Posted Date:
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