You have been provided with the following information from your taxpayer. Mr. B works in...
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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.
I would suggest preparing your calculation in excel (do not copy and paste in word). Use supporting notes (1,2, 3, or a, b, c, etc.) for the following:
Support each deduction or each amount that is not eligible to be deducted.
When supporting your items ensure you are specific as to whether the item is from the ITA or from a CRA Administrative document (i.e. Folio or Guide).
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