Jane is an employee for ABC Ltd. and during the current year she received a salary of
Question:
Jane is an employee for ABC Ltd. and during the current year she received a salary of $60,000. Jane worked away from the office visiting clients, and she is required to pay her own travelling expenses. In addition, Jane drives her own vehicle for employment purposes. Jane purchased the vehicle several years ago and has been depreciating her vehicle for tax purposes for many years. The opening UCC balance for her vehicle (Class 10) is $25,000 in the current year. Her employer has signed a Form T2200 certifying that requirement and that no reimbursements are paid for any expenses Jane incurs to earn employment income. Jane incurred the following vehicle costs in the current year: Driving costs (80% of driving was for employment purposes): Fuel $4,000.00 Insurance $750.00 Repairs $2,250.00 What is the maximum deduction Jane can claim for travel and motor vehicle expenses this year? What is Jane's net employment income for the current year?
Financial Accounting
ISBN: 978-1259222139
9th edition
Authors: Robert Libby, Patricia Libby, Frank Hodge