Question
You have just graduated and started working for an accounting firm that treats all their employees exceptionally well! The company provides you with a car
You have just graduated and started working for an accounting firm that treats all their employees exceptionally well! The company provides you with a car costing $35,000. The car is going to be used for business travel during work hours and you can also use it during weekends and evenings for personal use throughout the year.
The employer pays for the insurance, gas, maintenance, and repair of the car which costs $5,000 for the year. During the year, you drive the car for a total of 30,000 kms, of which 16,000 kms was for personal use and 14,000 for business use.
Required:
a) Are there any personal tax implications from the use of the Company provided car? Please provide any calculations and explain what the calculations represent and how it will impact your personal taxes.
b) Would the tax implications be any different if you drove the vehicle 18,000 kms for business and 12,000 kms for personal use?
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