Elaine's income for the year is as follows: The total costs of travel, partially for work, are
Question:
Elaine's income for the year is as follows:
The total costs of travel, partially for work, are as follows:
Elaine discovered that she needed a car for work. She purchased a Volkswagen Passat on January 10, 2022 for $55,000, plus HST of 13% for a total of $62,150. She received the money to buy the car from her dad. During the year, she has driven 34,000 km for work and only 6,000 km for personal use. Elaine wants to claim CCA on the car. Additional costs of travel while away from the area of where she lives are airfare ($3,500), accommodation ($4,000), and meals ($2,500).
The company does not give her an office, as she is out selling every day. She has partitioned a workspace in her home that she uses for her office. The office space takes up about 20% of the home and is used for no other purpose. The company provided all employees with a turkey at Christmas and Thanksgiving (value of $80 in total for the year). The company has deducted this expense for tax purposes.
The costs associated with Elaine's home are as follows:
Under Elaine's contract of employment, she is required to pay all of her own employment-related expenses as well as the costs to maintain her own office. She regularly travels out of the municipality on employment-related matters.
Required:
Compute Elaine's net income from employment. Show/support any computations whether or not relevant to your final answer. Provide explanations to support all inclusions, deductions, and exclusions.
List and briefly explain why any items were omitted from your calculation of net employment income.
Expert Answer:
To calculate Elaines net income from employment we need to take into account her gross income and then subtract allowable deductions and add any taxable benefits 1 Gross Income Salary 99000 2 Deductio... View the full answer
