Compute the minimum taxable benefit that will accrue to the employee. Ignore any sales tax implications.

What amount will he include in "Taxable Income"?

Will there be a Capital Gain when he sells them and if so, what is the amount?

What amount will he include in "Net Income for Tax Purposes"?

An executive receives options to purchase 1,000 of his employer's common shares at an option price of $25 per share. At the time, the shares are trading at $25 per share. He exercises the options when the shares are trading at $40 and in the following year, sells his shares at $50 per share.

Question

An employee is provided with a car that cost their employer $165,000. During the current year the employee drove the car 56,000 km of which 18,000 was considered to be for employment purposes. All operating costs were paid by the employer. The car was available for the employee for 10 months of the year.