Eric Fenson is employed as a shipping supervisor. In the evenings and on weekends, he holds a second job as a real estate salesman for a national real estate firm. His financial information for 2022 is as follows:

1. His salary from his day job is $80,000 per annum. However, the employer deducts a number of items from his salary, and so his net take-home pay is only $56,847. The following amounts were deducted in 2022:

Income tax	$	13,000
Union dues		900
Canada Pension Plan		3,500
Employment Insurance premiums		953
Registered pension plan contribution		4,000
Charitable donations remitted to United Way		800
	$	23,153

The employer paid the following amounts on behalf of Eric:

Canada Pension Plan	$	3,500
Employment Insurance premiums		1,334
Registered pension plan		3,000
Group term life insurance premiums ($50,000 coverage)		1,500
	$	9,334

Eric used the employer’s summer camp for a one-month holiday and paid the employer $260 rent. When not being used by employees, the summer camp is rented for $900 per month.

Although Eric owns his own automobile, he is provided with a company car. The car costs the company $47,000. During the year, he drove a total of 24,000 km, of which 22,000 were for personal use. The employer also paid all of the operating costs, which amounted to $3,000.

During the year, he attended a conference in Toronto. His spouse travelled with him at the company’s expense ($1,300).

The employer permits staff to purchase merchandise from its retail outlet at the company’s cost. During the year, Eric purchased for $1,100 merchandise with a retail value of $1,200.

1. As a real estate salesperson, Eric earns a base salary of $11,000 and receives commissions of $5,000. In relation to his real estate work, he incurs the following expenses:

Dues to a local real estate association	$	530
Fee for a three-day seminar on how to be an effective salesperson		3,000
Advertising—calendars and pens		2,300
Automobile operating costs		5,320
Promotion (meals and drinks for clients)		3,700
Personal meals (during in-town business)		530
Purchase of a cell phone		600
Basic cell phone plan (30%)		240

Eric uses his own automobile for his real estate activities. The car has an undepreciated capital cost for tax purposes of $13,000. During the year, he drove a total of 30,000 km, of which 27,000 was related to selling real estate. His employer provides him with a monthly car allowance of $260 ($3,120 per year).

Required: CAN YOU PLEASE FILL UP THE BOXES ACCORDINGLY :)
Determine Eric’s employment income for tax purposes for 2022.

 

 

Real Estate Income Limited Real Estate expenses Subtotal Maximum Deduction allowed $ 0