I am reviewing for a midterm for Taxation I and came into a problem that i cannot solve:
D is provided with the use of her employer’s car throughout the current year. the car was purchased for $30000 (including tax). THe employer also pays for hte operating expenses thatare $2600 anually. D drove the car 15000 km (employment) and 13000km (personal use). What is the minimum amount to be used in D’s employment income for tax purposes in the current year?
Note: The textbook we are using for this example should be based on 2017 prescribed rates
Given Solution: $7019
13000 X .25= 3250
reduced standby charge: 30000 X 2% X 12 X (13000/28000) = 3342.85
My answer: 3250 + 3342.85= 6492.85