What is the maximum deduction Tim may claim

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Question - Tim began employment as a commissioned salesman in July of this year and received a base salary of $60,000 and $5,000 in commissions based on sales for the year. During the year, Tim worked away from the office negotiating sales contracts. Tim is required to pay his own travelling expenses and his employer has signed a T2200 form certifying that requirement and certifying that no reimbursements are paid for any expenses Tim incurs to earn commissions. Tim incurred the following work-related costs from July through December of this year and all expenses are reasonable:

Meals and entertainment for potential customers $14,000

Automobile costs (90% of the following amounts were for employment purposes based on kilometres driven):

Fuel 4,000

Insurance 750

Repairs 2,250

Leasing costs for a car costing $20,000 ($500 per month) 3,000

What is the maximum deduction Tim may claim for employment expenses for the year?

If use 8(1)f to deduct, should the amount be limited up to commission income which s $5000? And if use 8(1)h instead, he can deduct up to $9000?

Reference no: EM132858497

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