Week 5 Testing Flashcards
(12 cards)
What is the exception to claim home office expenses. What expenses are allowable deductions?
If your home office is your principle place of work. Utilities, Maintenance and Rent costs can be deducted.
What are the two nontaxable benefits allowed?
Reasonable travel expenses (hotel/food), reasonable vehicle expenses (54 cents/km first 5000, 48 cents/km 5000+)
What is something that does NOT determine if a worker is an employee or contractor?
The total number of hours worked
What do Employees earn? What do Self-Employed Employees earn?
Employees earn Employment Income, Self-Employed Employees earn Business Income
What are the advantages of being Self-Employed?
Self-Employed Employees earn Business Income and deduct more expenses.
What are the advantages of being an Employee?
You earn Employment Income, can contribute to CPP and may have possible benefits
What does Employment Income include?
Salary/Wages, Bonuses, Comissions, Vacation Pay, Gratuities, Taxable allowances/benefits
What are the deductions from Employment Income?
Union/Professional Dues, Malpractice/ Professional Insurance, RPP contributions, moving expenses
Under what circumstances can an employee claim travel expenses/ deduct vehicle expenses?
If the employee is required to carry work outside of principal place of business
Can employees deduct a portion of their loan finances as vehicle expenses?
Correct!!
What is a fixed amount for vehicle expenses considered?
A fixed amount for vehicle expenses is considered a taxable income
Can Capital Cost Allowance be claimed for cars? What else can be claimed?
Yes Capital Cost Allowance can be claimed by cars as well as travel expenses and home work space expenses.
