During the year, the taxpayer received the following benefits from their employment. These benefits were not included on the T4 slip, unfortunately. As a result, you must compute the benefits and have them in your tax return as other income.

A taxpayer will have worked for ABC Corporate for three years on September 1 of this year and will be eligible for a company car as of that day. If ABC Ltd. buys the car on March 1 of this year, ABC Ltd. will cover all of the car's operating costs, which are projected to be $3,500 per year. Car driven 2,000 kilometres each month, of which 900 kilometres are for employment purposes. Refer to the income tax reference. 

Calculate the amount to be included in the taxpayer's current year's employment income.

1.  
2. The company provided you with a $100,000 loan. The loan has an annual interest rate of 1%. The interest is paid on a monthly basis. The principal is due at the end of the five-year period. You put $90,000 of the loan toward your property purchase. The $10,000 was spent on investments. Assume that the current year's prescribed interest rates are 4% for the first quarter and 5% for the remainder of the year. 
3. 
   
4. Calculate the amount that should be included in the taxpayer's employment .
5.  

Answer rating: 100% (QA)

To calculate the amount to be included in the taxpayers current years employment income for each ben... View the full answer