Question

Employee X has full use of an employer-owned vehicle. Details are provided below:

Vehicle was purchased for the employee use in: mid-December

Original cost of the vehicle to the employer, including HST: $20,000

Capital cost allowance to be claimed by employer (current calendar year): $4,792

Operating costs for the year paid by the employer, including HST and insurance (of $600) (current calendar year): $3,500

Personal-use kilometers (current calendar year): 12,000

Number of months available (current calendar year): 12

Reimbursement to employer for personal use at 15 cents per kilometer (current calendar year): 1,800

Required: compute the standby charge AND operating cost benefits for 2020, if the business-use kilometers are: 10,000. Hint* don't forget to consider the impact of amounts reimbursed.

Answer 1