Question
The following information applies to Tammy Taxpayer, employed by Time Travellers Ltd. (a Canadian Controlled Private Corporation). Gross salary $110,000 Bonus 50,000 Bonus based on
The following information applies to Tammy Taxpayer, employed by Time Travellers Ltd. (a Canadian Controlled Private Corporation). Gross salary $110,000 Bonus 50,000 Bonus based on Tammys hard work negotiating contracts on behalf of the company (of which $15,000 was received on December 25, 2019 and the remainder will be received on January 15, 2020) During 2019, Time Travellers withheld the following amounts from her gross salary: Registered Pension Plan $6,000 Charitable Donations United Way 2,000 Federal and Provincial Income Taxes 28,750 Tammys employer made a $6,000 matching contribution to her registered pension plan. Travelling expenses for a 3 week trip for Tammy were reimbursed by Time Traveller. The cost of the entire trip was $3,000. Tammy spend one week attending a business conference and the other two weeks she stayed on as a vacation Time Traveller provided Tammy with a Mercedes Benz, which she used for 10 months of the year for work and pleasure. The following pertains to her automobile usage: Monthly lease payment $800 Kilometres driven for employment purposes 29,000 kms Total kilometres driven during the year 32,000 kms Operating costs paid by the employer $4,300 Tammy was required to pay professional association dues of $1,500 for the year. Tammy incurred the following expenses while on company business trips throughout the year: Hotel accommodations $3,500 Airline fare 6,400 Meals 2,300 All of these expenses were charged to Tammys personal credit card and reimbursed by the employer. Tammy was awarded a Shirley Elford glass sculpture, valued at $900, for exceeding her sales targets by 20%. Tammy was given one of the limited underground parking spots in her building. The cost of the parking spot is $1,500 and is paid by Time Travellers Ltd. Tammy exercised her stock options in 2019. She acquired 2,000 shares on August 1, 2019 for $15 per share when the shares were trading for $22 per share. The options were granted in 2018, when the shares were trading for $14 per share. On November 1, 2019, Tammy sold her shares for $25 per share. Time Travellers paid $300 for Tammys income tax preparation. REQUIRED: Calculate the amount that would be included in calculation of Tammy Taxpayers Net Employment Income for taxation purposes for the 2019 taxation year. PLEASE SHOW EACH ITEM THAT MAKES UP NET EMPLOYMENT INCOME
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