Brent Bishop is the vice president of operations froSouthern Swwet Bakery. He drives a 2019 Toyota Prius Prime as his company car, and it has a fair market value of $37,500. The prorate annual lease value per Publication 15-b for the vehicle is $10,250. He reported driving 35,250 miles during 2019, of which 20 percent were fro personal reasons. The company pays his fuel and chargers him five cents per miles for fuel chargers. Required: Using the leave value rule, what is the valuation of Brent company car benefits? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Brent Bishop is the vice president of operations froSouthern Swwet Bakery. He drives a 2019 Toyota Prius Prime as his company car, and it has a fair market value of $37,500. The prorate annual lease value per Publication 15-b for the vehicle is $10,250. He reported driving 35,250 miles during 2019, of which 20 percent were fro personal reasons. The company pays his fuel and chargers him five cents per miles for fuel chargers. Required: Using the leave value rule, what is the valuation of Brent company car benefits? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter5: Introduction To Business Expenses

Section: Chapter Questions

Problem 56P: Hassad owns a rental house on Lake Tahoe. He uses a real estate firm to screen prospective renters,...

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Hassad owns a rental house on Lake Tahoe. He uses a real estate firm to screen prospective renters, but he makes the final decision on all rentals. He also is responsible for setting the weekly rental price of the house. During the current year, the house rents for 1,500 per week. Hassad pays a commission of 150 and a cleaning fee of 75 for each week the property is rented. During the current year, he incurs the following additional expenses related to the property: a. What is the proper tax treatment if Hassad rents the house for only 1 week (7 days) and uses it 50 days for personal purposes? b. What is the proper tax treatment if Hassad rents the house for 8 weeks (56 days) and uses it 44 days for personal purposes? c. What is the proper tax treatment if Hassad rents the house for 25 weeks (175 days) and uses it 15 days for personal purposes?
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Finley is an employee who drives a 2022 Ford C-Max with a fair-market value of $32,000. Finley has been given the choice to have the fringe benefit reported on the W-2 either using the lease-value rule or the cents-per mile rule. The lease value is $8,750, according to Publication 15-b. Finley drove 30,258 miles, 7,552 of it was for personal use. All gasoline was provided by the employer and the amount for personal use was charged back to Alec at $0.0585 per mile. If the car was available for 175 days during the year, what is the prorated annual lease percentage, using the lease-value rule? Note: Round the final answer to two decimal points. A. 47.95%B. 48.61%C. 52.05%D. 69.75%
The questions below are based on the following information: The cost of the automobile is $20,000 including HST. If the car is leased, the monthly lease payment is $500 including HST. The car is driven for a total of 26,000 km during 2022 and the operating costs for the year are $4,000. Assume the car is purchased. It is used by the employee for 10 months of the year. In the other months, he was required to return the car to his employer's premises per company policy. He drives it for personal purposes for a total of 11,000 km. The minimum taxable benefit is: a. $2,160. b. $3,240. c. $2,455. d. $4,800. e. $4,752. f. $1,964. g. $1,650. h. $1,150. i. $2,250. j. $1,800. k. $3,300. l. $3,959. (The correct answer is l. $3,959 cuz I got marked, but I want to know the process of the calculation for this one. Thanks for reading)
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Alec is an employee who drives a 2021 Ford C-Max with a fair-market value of $32,000. He has been given the choice to have the fringe benefit reported on his W-2 either using the lease-value rule or the cents-per mile rule. The lease value is $8,750, according to Publication 15-b. Alec drove 30,258 miles, 7,552 of it was for personal use. All gasoline was provided by the employer and the amount for personal use was charged back to Alec at $0.055 per mile. If the car was available for 175 days during the year, what is the prorated annual lease percentage, using the lease-value rule? (Do not round intermediate calculations, only round final answer to two decimal points.) Multiple Choice 47.95% 48.61% 52.05% 69.75%
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