Tax Tips Accountant at Brampton
- A standby charge may not apply under certain, well-defined, circumstances. If, for instance, the employer’s policy is to have an employee return the automobile to company premises when they embark on a business trip, the standby charge should be prorated to exclude those days. But if the employee voluntarily leaves the automobile at the employer’s premises over that period, those days will probably count toward the standby charge, Accountant at Brampton.
- The full operating benefit for personal use of an automobile applies if the employer pays any operating expenses. Therefore, it may benefit you to fully reimburse your employer for such coverage.
- The standby charge is calculated on the vehicle’s original cost regardless of its age. If it is an older vehicle, consider purchasing the car from your employer. Note, however, that if a leased automobile is purchased at less than its fair market value, the difference is considered a taxable benefit and must be included in your income according Accountant at Brampton.
- If you exercise an option to purchase an automobile from your employer at less than its fair market value (FMV), the difference between the price paid and FMV is considered to be a taxable benefit Tax Accountant in Brampton.
- Travel between your home and employer’s office is generally
considered to constitute personal, rather than business use of the automobile. If, however, you are required to make a business stop between
your home and the office at the request of your employer, the entire distance traveled throughout the day may constitute business, rather than personal use Accountant at Brampton.
- Keep a record log to support business mileage by Accountant in Brampton.
- Employer-subsidized parking must generally be included in income if the benefit is being provided primarily to the employee. However, if the parking spot is also provided for the benefit of the employer, to allow the employee to use their automobile in the course of carrying out business-related duties during office hours, or save on
taxi fares when required to work late, for example, this amount might be reduced or waived by Tax Accountant in Brampton.
- Salespersons or other employees who live and travel in a motor home might be able to deduct expenses of that motor home relative to the proportion it is used for business (i.e. distance traveled).
- Even though you may pay tax on the imputed interest
benefit, borrowing funds from your employer may prove to be more efficient and less expensive than other sources. However, careful evaluation of borrowing alternatives may require professional advice from Accountant in Brampton.
- If you expect interest rates to increase, consider renegotiating an employee home-purchase loan for an additional term. The taxable benefit might be minimized over the next five years of that term by accountant at Brampton.
- If you participate in a deferred salary leave plan, you must return to your regular employment following a leave of absence for a period that is at least as long as the leave itself, Accountant at Brampton. Otherwise any deferred amounts, plus unpaid interest, immediately become taxable as employment income, whether paid out or not,
during the taxation year you realize you can’t return to work for the specified period.
- In cases involving a loss of office or employment, you may receive an amount awarded as damages by a human rights tribunal. If that amount is part of a retiring allowance, you might be able to exclude
a reasonable amount of such allowances from income for tax purposes by Tax Accountant Brampton. The Ontario Human Rights Code imposes a $10,000 limit for such an award.
- Years of past service need not have been continuous. Where there were gaps in employment and the employee has “bought back” years of service under a registered pension plan, special taxation rules may apply by Accountant in Brampton.
- All or a portion of payments with respect to a loss of employment may still qualify as a retiring allowance, even if they are made before the employer/employee relationship has been formally severed. If, however, a retiring allowance initiates while an employee remains on the company’s payroll there must be some evidence the cessation of that relationship, including the receipt of employee benefits, is scheduled to occur at a fixed date according to Tax Accountant in Brampton.
- For more information please see your Tax Accountant at
Brampton or call us at 905-794-8283.