Advise Sam’s employer as to the FBT consequences (using statutory formula method) arising out of the use of the car. You may assume that any benefits are Type 1 fringe benefits.
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Sam is an employee at a large land development company. He has negotiated car benefits with his employer. Sam was provided with the car for the period 1 April 2020 to 31 March 2021. The leased car value was $22,000 on 1 April 2020, and the car had only been leased for a year at that time. Sam is required to pay for any petrol and other maintenance costs, which he has determined to be $1,300 for the period 1 April 2020 to 31 March 2021.
Advise Sam’s employer as to the FBT consequences (using statutory formula method) arising out of the use of the car. You may assume that any benefits are Type 1
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- Keith is an employee of a real estate company. He has negotiated car benefits with his employer. Keith was provided with the car for the period 1 April 2021 to 31 March 2022. The leased car value was $36,000 on 1 April 2021, and the car had only been leased for a year at that time. Keith is required to pay for any petrol and other maintenance costs, which he has determined to be $1,600 for the period. Advise Keith's employer as to the FBT consequences (using statutory formula method) arising out of the use of the car.In August 2021, Maxine found employment as a consultant for a small sustainability firm in Warrnambool. The contract includes an annual salary, which $62,000 plus superannuation has been received in the 2022 income tax year. Maxine was required to purchase wet weather gear and other protective clothing at her own expense, totalling $660. Her employer reimbursed her for the total amount and also provided her with a hand-held radio transceiver (cost $270) and tablet computer (cost $1,599 plus case $210) for whilst she is on site visits. Explain the income tax and FBT implications of the remuneration package she is receiving from her employer, from both the employee and employer’s perspective.Danny owns an electronics outlet in Dallas. In 2021, he paid $620 to register for a four-day course in management in Chicago. Danny paid $780 in airfare. After the course, Danny spent the last day sightseeing. During the trip, Danny paid $184 per night for five nights' lodging, $180 per day for meals in restaurants, and $120 per day for a rental car. What amount of these travel expenditures may Danny deduct as business expenses? (Leave no answers blank. Enter zero if applicable.) Danny may deduct travel expenses of $
- Arthur was seconded to work in Hong Kong since 1 April 2020 at an annual salary of $800,000. During the first six months he was provided with a two bedroom suite in a three star hotel in Wanchai until 30 September 2020. Arthur then moved to a flat in Repulse Bay and his rent was fully paid for by his employer. Calculate the rental value to be included in his assessable income for the year of assessment 2020/21. Select one: a. $72,000 b. $80,000 c. $40,000 d. $56,000Mr. O’s employer requires him to use his own vehicle for work and pay all of the vehicle’s operating costs. Mr. O. is not paid commissions. Mr. O. purchased a vehicle on July 1, 2020 for $37,290 including HST. Mr. O. drove this vehicle 25,000 kilometers, of which 15,000 were for work. The capital cost allowance for 2020 is $15,255. During the 6 months he owned vehicle he paid: bank loan interest $1,950 gas and oil 1,840 maintenance 300 insurance 1,400 licence plates 100 Calculate the amount Mr. O. can deduct from employment income. Show all calculations.Mr. O's employer requires him to use his own vehicle for work and pay all of the vehicle's operating costs. Mr. O. is not paid commissions. Mr. O. purchased a vehicle on July 1, 2020 for $37,290 including HST. Mr. O. drove this vehicle 25,000 kilometers, of which 15,000 were for work. The capital cost allowance for 2020 is $15,255. During the 6 months he owned vehicle he paid: bank loan interest $1,950 gas and oil maintenance insurance 1,840 300 1,400 100 licence plates Required: Calculate the amount Mr. O. can deduct from employment income. Show all calculations.
- Jane Doe moved from Victoria to Vancouver for an internal transfer requested by her employer on October 1, 2020. Prior to relocation, she spent $1000 on a house hunting trip to Vancouver and ended up signing a one-year lease for an apartment in Vancouver after an unsuccessful bid for a house. The cost of sales of her old residence in Victoria, including legal fees and brokerage fees, totaled $7,200. The actual moving costs were $13,000. Jane’s employer agreed to pay $8,000 for her moving costs. Jane’s salary for 2020 was $48,000 (assume her monthly salary is the same throughout the year). Required: Calculate Jane’s maximum moving expense deduction for 2020. Please also indicate the carry forward amount, if any.During 2021, Harry, a self-employed accountant, travels from Kansas City to Miami for a seven-day business trip. While in Miami, Harry decides to stay for an additional 5 days of vacation. Harry pays $600 for airfare, $200 for restaurant meals, and $500 for lodging while on business. The cost of meals and lodging while on vacation was $300 and $500, respectively. How much may Harry deduct as travel expenses for the trip?On July 15, 2018, H.P. purchases a personal computer for his home. The computer cost $4,000. H.P. uses the computer 60 percent of the time in his business, 15 percent of the time for managing his investments and the remaining 25 percent of the time for various personal uses. Calculate H.P.'s maximum depreciation deduction for 2018 for the computer, assuming he does not make the election to expense or take bonus depreciation.
- Dominic owns a property in Sai Kung which was let under the following terms: I. Term: 1 January 2020 to 31 December 2020. II. Rental deposit: $16,000. III. Monthly rent: $8,000. IV. Rates: $1,000 per quarter payable by the tenant. V. Management fee: $800 per month payable by the tenant. The tenant paid rent on schedule only up to June 2020, but he continued to live in the property until December 2020. Dominic repossessed the property and applied the rental deposit against the outstanding rent. The property was let again in February 2021 at a monthly rent of $3,000. What is the net assessable value of the property for the year of assessment 2020/21?On September 1, 2021, Jennifer Wells moves from London to Oakville at the request of her employer. Prior to this date, she spent $875 on a house hunting trip to Oakville. However, she was not successful and, given this, she has signed a one-year lease for an apartment at her new location. The legal fees and real estate commissions associated with the sale of her London house were $8,500. The actual costs of the move, including amounts paid to a moving company, totaled $15,230. Her employer agreed to pay $8,000 of her moving costs. Ms. Well's salary for 2021 was $45,000. Determine Ms. Well's maximum moving expense deduction for 2021, as well as any carry forward that is available. Payment From Employer House Hunting Trip Balance Cost Of Selling London House Moving Costs Available Deduction Income At New Location Carry ForwardAmeer is employed by a UK company and earns £50,000 per annum. During the tax year 2020–21 he received the following benefits: – The use of a flat. This had been purchased by the company in 2018 for £240,000. The flat has an annual rateable value of £3,200. Ameer paid £200 a month to his employer for the use of the flat. The flat is not eligible as job related accommodation. – The use of furniture in the flat. This had an original market value of £8,000 in 2020 when it was purchased by the company for the use of company employees. – A motor mileage allowance. Ameer used his own car to travel 18,000 miles in the tax year 2020–21 of which 14,000 were on business. The company paid Ameer 50p a mile for each business mile travelled. – A parking place at the company office. This costs the company £600 a year. In 2020/21, Ameer pays expenses out of his earnings as follows:- a. He pays subscriptions to professional bodies of £360. b. He makes business telephone calls…
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