Question
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
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:
- 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.
- 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.
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Real Estate Income Limited Real Estate expenses Subtotal Maximum Deduction allowed $ 0
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