44 6 employer house loan created from a work

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Unformatted text preview: e benefit is the difference between the prescribed rate of interest and the actual interest paid [ITA 80.4] o The prescribed rate of interest will usually change every quarter Loan used to acquire a house or to repay an existing house loan • Benefit can be determined using the prescribed rate that was in place at the time the loan was made • If the prescribed rate declines, the lower rate may be used • If the prescribed rate increases, the rate in place at the time the loan was made will remain (for a maximum of five years) [ITA 80.4(4), (6)] Employer house loan created from a work relocation • All or a portion of the benefit may be deducted in arriving at taxable income • Only available when employee moves 40 km close to new work location • Home relocation loan deduction is equal to the least of [ITA 110(1)(j)]: o Imputed interest benefit on home relocation loan (as described above); o CRA’s prescribed rate X $25,000; and o Imputed interest benefit on all employee loans Stock Options [ITA 7] Three categories of stock options: 1. In- The- Money Options of pub...
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This document was uploaded on 02/08/2014.

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