Exercise Three - 7 Subject: Taxable Benefits - Employer Leased Automobile Mr. Michael Forthwith is provided...

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Exercise Three - 7 Subject: Taxable Benefits - Employer Leased Automobile Mr. Michael Forthwith is provided with a car that is leased by his employer. The monthly lease payments for 2020 are $525, plus $68 HST. During 2020, he drives the automobile a total of 40,000 kilometres, of which 37,000 kilometres are employment related. The automobile is used by him for 325 days during the year. His employer paid a total of $11,250 in operating costs. When he is not using the automobile, company policy requires that it be returned to their premises. Calculate Mr. Forthwith's minimum 2020 taxable benefit for the use of the automobile. SOLUTION available in print and online Study Guide. Exercise Three - 7 Subject: Taxable Benefits - Employer Leased Automobile Mr. Michael Forthwith is provided with a car that is leased by his employer. The monthly lease payments for 2020 are $525, plus $68 HST. During 2020, he drives the automobile a total of 40,000 kilometres, of which 37,000 kilometres are employment related. The automobile is used by him for 325 days during the year. His employer paid a total of $11,250 in operating costs. When he is not using the automobile, company policy requires that it be returned to their premises. Calculate Mr. Forthwith's minimum 2020 taxable benefit for the use of the automobile. SOLUTION available in print and online Study Guide.

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1 Calculate the total lease payments for the year This is done by multiplying t... View the full answer