Acco340Lecture 2-3 - Employment Income

Note in all cases home office expenses can not be

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Note In   all cases, home office expenses can not be used to create or increase an employment loss however, any home office expense not deductible in a year can be  carried forward indefinitely (but not backwards) and  be deductible against future employment income
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                                                             SUMMARY                                                   EMPLOYMENT INCOME DEDUCTIONS                                                      WEEKS 2 & 3                                                                                            1. Salesperson employees only,  under certain conditions, can deduct expenses under 2 specific ITA sections: -ITA 8 (1) (f)- only for individuals with some or all commission income (ie, a salesperson);          and,  as a separate deduction (not restricted to the commission income limitation), -ITA 8 (1) (j)- motor vehicle CCA and interest on motor vehicle and Other expenses ITA 8 (1) (i) Note: I)  expenses claimed under ITA 8 (1) (f) cannot exceed commission income ii) if you claim under ITA 8 (1) (f), then you cannot claim under any other sections, except for  ITA 8 (1) (j) and ITA 8 (1) (i) iii) under all ITA 8 sections regarding employment income,  CCA is   allowed only for an automobile, aircraft or musical  instrument , but leasing other assets (eg, office equipment, furniture, computers, etc.) , as well as the 3 asset, is allowed 2.  All Employees (including salespersons)     , under certain conditions, can deduct expenses under several ITA sections: -ITA 8 (1) (h)    -travel costs (eg, hotel, airfare,  meals while travelling only , taxi, etc) -ITA 8 (1) (h.1) -motor vehicle expenses (gas, mtce, etc), except CCA & interest on loan that are claimed under ITA 8(1)(j) -ITA 8 (1) (i)    -other expenses eg, rent, home office expenses (excludes insurance & property taxes), supplies, dues, but                          excludes   p romotional expenses, entertainment and  meals   not consumed while       travelling                           -ITA 8 (1) (j)    -motor vehicle CCA only and interest on vehicle loan only Note: i) no limitation on expenses claimed under ITA sections affecting all employees , ie, expenses greater than employment  income   can create a net employment loss  that can offset other income. Any excess, like a non-capital loss, can be  carried back 3 years and forward 20 years.
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