Total car benefit 20240 included on t4 added to

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Total Car Benefit $ 20,240 – included on T4 (added to income) Misty Dorsey – Employer Leased Car Business Use - 14,000 km / 51,000 km = 27% Standby Charge 2/3 x [Annual Lease payments (incl GST &PST) – Insurance] x Availability Factor = 2/3 x [($620 x 12 months) - $1200)] x 12/12 = $4,160 -no reduced standby allowed, employment use is less than 50% Operating Costs 1. Primarily employment – ½ x standby charge (cannot use because business use is less than 50%) 2. Kilometre method - $ 0.27 x 37,000 km = $9,990 Car Benefit Standby charge $ 4,160 Operating costs 9,990 Less: Reimbursement (2,400) $200 x 12 months Total Car Benefit $11,750 – included on T4 (added to income) Saul Dorsey – Employer Leased Car Business Use - 29,500 km / 31,200 km = 95% Standby Charge 2/3 x [Annual Lease payments (incl GST &PST) – Insurance] x Availability Factor = 2/3 x [($1,200 x 8 months) - $0)] x 8/8 = $6,400 -reduced standby allowed because business use is greater than 50% $6,400 x Personal Km/1667 km x availability = $6,400 x [*1,700 km/ (1667 km x 8 months)]= $815.84
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Assignment Problem 3-5 (continued) Operating Costs 1. Primarily employment – ½ x standby charge = 1/2 x 815.84 = $407.92 2. Kilometre method - $ 0.27 x 1,700 km = $459 Car Benefit Standby charge $ 815.84 Operating costs 407.92 Less: Reimbursement (0) Total Car Benefit $1,223.76 – included on T4 (added to income)
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  • Fall '14
  • Kilometre, Totaled

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