Question
Ronald Smith is an employee of locally owned corporation. He works in their Baden office and lives in a bungalow in the surrounding area. His
Ronald Smith is an employee of locally owned corporation. He works in their Baden office and lives in a bungalow in the surrounding area. His earns a modest salary of $75,000 for the working for this company.
Other employment related information is as follows:
- Ronalds employer requires him to pay all his employment related expenses, as well as provide his own office space. Ronald has the required Form T2200 from his employer which states that he needs to work from home 100% of his time. Part of his job is to visit clients.
- He also has the following employment expenses:
- Parking $125.00
- Office Supplies 565.00
- Postage 75.00
- For his employment related travel, Ronald drives a car that he purchased on January 1, 2019 for $36,500, including HST. During 2019, he drives 32,000 kms, of which 20,800 are employment related. Ronald had financed the car with a loan from a local bank and, during 2019, he had paid interest of $2,750.
- The costs of operating the car during 2019 was $10,430. This is made up of the following:
- Gas and Oil $8,035
- Repairs 1,025
- Insurance 1,250
- License 120
- Ronald uses 35 percent of his personal residence as an office. During 2019, the cost associated with his home were as follows:
Interest amount $ 7,050
Property Taxes 2,950
Utilities 2,225
Insurance 1,060
Painting and updating rooms 3,200
Total $16,485
Required:
Calculate Ronalds employment-related expenses that can be deducted on his personal taxes by filling out the T777 form for Ronald.
For further information about this sum is the " T777 Form 1 ". I have tried to upload the form but it is not allowed to upload the file.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started