Selected Answer e The credit balance represents recapture of CCA and is

Selected answer e the credit balance represents

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Selected Answer: e.The credit balance represents recapture of CCA and is included in the company’sbusiness income in the current year.Sunday, September 28, 2014 9:08:50 PM MDTDownloaded by Pardeep Garg ([email protected])lOMoARcPSD|4345911
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MODULE 5 OVERVIEWIn Module 2 you learned that employment income is one of the components of Net Income for income tax purposes in Canada. This module will focus on the income tax rules applied in the calculation of employment income. You will learn what amounts are included in employment income and what specific deductions are allowed in computing the net amount earned from employment income (that is, from net employment income). In the computation of employment income, taxable benefits are an important inclusion. These taxable benefits are sometimes referred to as fringe benefits. You will learn what taxable benefits are and what the more common taxable benefits are. An important component of this module will be the computation of the taxable benefits that are among the more common taxable benefits included in net employment income. OBJECTIVESAs a result of learning in this module, you should be able to: Describe the components of net employment income. Explain what is meant by a taxable benefit. Describe the more common taxable benefits included in employment income and GST implications, where applicable. Describe the types of employment insurance premiums paid by the employer that are included in taxable benefits. Explain which employment allowances are taxable benefits. Compute the taxable benefits related to an employer-owned vehicle provided to an employee. Compute the taxable benefit related to loans from an employer to an employee. Downloaded by Pardeep Garg ([email protected])lOMoARcPSD|4345911
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Identify the more common deductions allowed in the computation of net employment income. Prepare a T1 personal tax return reporting employment income and expenses on the ProFile software. Under the income tax legislation, CCA is an allowed deduction in the computation of the net amount earned from property income or business income (and may also apply in claiming motor vehicle expenses as an employment deduction). As you progress through this course, you will learn how to enter the information required for the computation of the CCA deduction (for example, in the computation of the net business income) using ProFile software. For this module please read the following sections in Chapter 3, Income or Loss from an Office or Employment, in the textbook: Byrd, C., & Chen, I. (2014).Byrd & Chen's Canadian tax principles (20132014). Toronto: Pearson Prentice Hall. Sections: Employment Income Defined Inclusions Salaries and Wages Inclusions Fringe Benefits oCRA Administrative Practices on Fringe Benefits oNon-Taxable Benefits oOther ITA 6 Inclusions Inclusions GST on Taxable Benefits Inclusions Automobile Benefits oEmployer Provided Automobiles oAllowances and Travel Costs Downloaded by Pardeep Garg ([email protected])lOMoARcPSD|4345911
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