Ms. Sharon Herzog works for a large, publicly traded employer. As she is required to travel in her work for that employer, the company provides her with an automobile.
Sharon is allowed to use the vehicle for personal activities. However, there are some periods during the year when she does not need the car for employment related activities. During these periods she is required to return the car to her employer's premises.
The car that she will use was purchased by her employer in 2018 for $45,200, including $5,200 in HST. During the years 2018 and 2019, the company deducted maximum CCA.
During 2020, Sharon drove the car a total of 37,000 kilometers. The company pays all of her operating costs which, during 2020 totaled $11,340.
Required: Indicate the minimum taxable benefit that would be allocated to Sharon in each of the following independent Cases:
Case 1 - Sharon has use of the car for 9 months of the year. Personal use during the year totals 6,000 kilometers.
Case 2 - Sharon has use of the car for 11 months of the year. Personal use during the year totals 28,000 kilometers.
Case 3 - Sharon has use of the car for 7 months of the year. Employment use during the year totals 18,600 kilometers.

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The Answer of Ms. Sharon Herzog works for a large, publicly traded employer. As she is required to travel in her work for that employer, the company provides her with an automobile.
Sharon is allowed to use the vehicle for personal activities. However, there are some periods during the year when she does not need the car for employment related activities. During these periods she is required to return the car to her employer's premises.
The car that she will use was purchased by her employer in 2018 for $45,200, including $5,200 in HST. During the years 2018 and 2019, the company deducted maximum CCA.
During 2020, Sharon drove the car a total of 37,000 kilometers. The company pays all of her operating costs which, during 2020 totaled $11,340.
Required: Indicate the minimum taxable benefit that would be allocated to Sharon in each of the following independent Cases:
Case 1 - Sharon has use of the car for 9 months of the year. Personal use during the year totals 6,000 kilometers.
Case 2 - Sharon has use of the car for 11 months of the year. Personal use during the year totals 28,000 kilometers.
Case 3 - Sharon has use of the car for 7 months of the year. Employment use during the year totals 18,600 kilometers.

Ms Sharon Herzog Works for a Large, Publicly Traded Employer