Acco340Lecture 2-3 - Employment Income

Reduce the standby charge benefit or any other

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reduce the standby charge benefit or any other employee benefit     .      Reimbursement examples:                 1. Standby benefit          2,000                                                          2,000       Reimbursement       (2,400)                                                          (3,600)                                                    (400)                                                          (1,600)      Operating benefit                   1,200                                                             1,200               Total taxable benefit                  800                                                                Nil     - 400 deduction is lost 2. Standby benefit                           2,000                                                              2,000     Operating benefit          1,200                                                                1,200        Reimbursement        (2,400)                                                                (   1,000)                                             (1,200)       Nil  - 1,200 deduction is lost                            200                          Total taxable benefit                      2,000                                                               2,200                                                                                                                                                                     Tax Planning for Auto Benefits No longer a tax efficient employee perk as employer deductions are capped (eg.  for 2010 , $30,000 plus applicable sales taxes for  owned auto -$800 per month plus applicable sales taxes for leased auto). However, the following could reduce the taxable benefit: - Record keeping  – between personal and business kilometres and periods of availability is necessary in order to  avoid 100% - based taxable benefits.
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  • Fall '10
  • Mastromonaco
  • Quebec, taxable benefit, ITA, employee taxable benefit

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