CACC 520 Lecture 6: Lesson 6
14 Mar 2017
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Conditions for deductibility by square footage: principal place of business, used exclusive to earn income, dedicated area in home, cannot exceed income earned, expenses include. Cost of leasing/buying vehicle: 800$/month max deductions, unless standby charge for benefits no max, cca is 30,000, capital lease deduct cca rather than lease paid. Non deductible auto, allowances paid by employer: same as employer if extra given to employee, it needs to be added based on each employee. Foreign media advertising: deduction is disallowed to attract different population canadian foreign. Meals & entertainment: 50% deductible so on ita 50% needs to be added back. Inventory valuation: lifo is not allowed, absorption costing is not allowed: direct material, direct labour, variable and fixed.
