June is a salesperson who earned a total of $40,000 in the current year, including $5,000 in commissions. She was required to travel in her job and was required to pay her own expenses, which consisted of the following annual amounts (including GST 5% when applicable):

 

(a) entertainment and meals with clients, including golf membership of $600      $5,600

(b) home office expenses (including an allocated portion based on square footage of the home office of mortgage interest of $700 and property taxes of $146) .......... 3,500

(c) car operating expenses:     

 gas...........................................................................................................4,589             insurance................................................................................................................311

(d) interest paid on bank loan to purchase car (12 months of payments)............. 1,500

(e) cost of a new printer......................................................................................... 700

(f) meals expense while travelling (away from the metropolitan area of her employer for more than two days at a time).........................................................................   910

 

Her employer signed T2200 certifying that she was required to pay these expenses directly. Her company paid her an allowance of $0.35 per kilometer plus a yearly allowance of $1,200. She received both allowances for the use of her car in carrying out her duties of employment.

 

She owns her own car, purchased before November 20, 2018, which she uses for employment purposes. The capital cost allowance available on the car for the year is $4,000 before reduction for employment use. The car was driven a total of 28,000 kilometers during the year, of which 18,000 kilometers were driven in the course of her employment.

 

Required: Show all calculations necessary to support your conclusions.

 

Part A: In Excel, calculate June’s employment income for tax purposes. Use ITA references when listing deductions from employment income.

 

Part B: Explain to June why you excluded any of the above information from your calculations and list excluded amounts.

 

Part C: Determine if June is eligible for GST rebate and the amount she can recover on eligible expenses. If the rebate is received in the following year, what tax adjustments would be made in a year? Use ITA references when listing adjustments.