Q1 sol - 1 car allowance 4,800 1 travel allowance 3,600 1...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Question 1 Marks salary 60,000 1 commission 20,000 1 life insurance premiums 200 1 health insurance premiums non taxable 1 group sickness plan - no employer contributions so non taxable 1 Loan: deemed interest: 4% x $10,000 181/365 198 1 3% x $10,000 x 184/365 151 1 minus $200 interest paid 149 1 deemed interest paid and deduction -149 1 actual interest paid and deduction -200 1 stock option benefit: 1,000 x (14-10) 4,000 1 (no deferral as in the money) standby charge: 6,000 / 20,004 x 2/3 x $7,200 1,440 2 operating cost benefit lesser of 1/2 standby charge, and 720 1 .24 x 6,000 1,440 1 720 2,200 insurance and 90 license - actual costs not included in 6(1)k) benefit
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 1 car allowance 4,800 1 travel allowance 3,600 1 (unreasonable as > expenses) travel and car expenses less than commision, so use 8(1)(f) expenses: 1 travel accomodation, travel meals @ 50%-1,300 1 car $3,400 x 18/24-2,550 1 food and entertainment 50% rule-1,000 1 blackberry monthly charges: .8 x 11 x 100-880 1 House expenses @ 10%: 1 property tax-300 1 house insurance-90 1 10% of heat and utils-200 1 mortgage interest - considered capital expense, not allowed 1 cost of blackberry - capital cost, not allowed 1 88,240 29 Max 28...
View Full Document

This note was uploaded on 03/24/2012 for the course ADMS 4561 taught by Professor Josephfrankovic during the Winter '10 term at York University.

Ask a homework question - tutors are online