You have been provided with the following information from your taxpayer. Mr. B works in...
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Accounting
You have been provided with the following information from your taxpayer. Mr. B works in company ABC Ltd He is required to use his own car and incur the necessary expenses to earn commission income.
Mr. B purchased a car on July 1, 2020 for $35,000 (including HST). The CCA on the vehicle is $2,000.
Total km = 20,000; personal km 4,000
Total commission received in 2020: $17,500
Mr. B incurred the following expenses to earn commission income:
Meals and entertainment: $13,300
Client promotional material: $12,500
Gasoline and operating expenses: $5,700
Required: Calculate the total eligible expenses for Mr. B for 2020.
Explain whether Mr. B has options in terms of which section (in s.8(1)) he can deduct employment expenses and what conditions are needed for each one.
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