Taxpayer A secured employment as a commissioned salesman in July 2020. In 2020, they received a base salary of $70,000, and $3,000 of commissions. A further $8,000 of commissions earned in December was paid to the taxpayer in January 2021. Taxpayer A worked away from the office negotiating sales contracts, and they are required to pay their own vehicle and promotional expenses. Their employer has signed a Form T2200 certifying that requirement and certifying that no reimbursements are paid for any expenses Taxpayer A incurs to earn commissions.

Taxpayer received an allowance for meals and accommodation of $14,000.

Taxpayer A incurred the following costs from July through December 2020:

Meals and entertainment for potential customers $5,000

Accommodation 12,000

Driving costs (total kilometers driven was 30,000 of which 8,000 was personal):

Gas and oil 4,000

Insurance 3,150

License 250

Leasing costs ($700 per month) 4,200

Required:

a) Calculate the maximum deduction Taxpayer A may claim for employment expenses in 2020 under 8(1)(f)

b) How would your calculation differ if the taxpayer chose to deduct expenses under 8(1)(h) and 8(1)(h.1)