Calculate the amount Mr O can deduct from employment income

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Reference no: EM132836082

Problem - Mr. O's employer requires him to use his own vehicle for work and pay all of the vehicle's operating costs. Mr. O. is not paid commissions.

Mr. O. purchased a vehicle on July 1, 2020 for $37,290 including HST. Mr. O. drove this vehicle 25,000 kilometers, of which 15,000 were for work. The capital cost allowance for 2020 is $15,255. During the 6 months he owned the vehicle he paid:

bank loan interest $1,950

gas and oil 1,840

maintenance 300

insurance 1,400

licence plates 100

Required - Calculate the amount Mr. O. can deduct from employment income. Show all calculations.

Reference no: EM132836082

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