NotesCh3.pdf

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CHAPTER 3
Home Relocation Loan
- If employee loan is made by employer to assist in a
move that is at least 40 km closer to the new work
location, there is an exemption on the calculation of
the taxable benefit of the employee loan.
- The exemption reduces taxable income (not
employment income)
Home Relocation Loan
- The exemption is calculated as
$ 25,000 x Prescribed Rate
- Exemption is available for 5 years provided the loan to
employee is still outstanding
- New location must be 40km closer to the new work
location
Tax Rates
- Federal tax rates increase at higher levels of taxable
income
- Taxable Income Tax Rate
0 – 37,885 15%
37,886 75,769 22%
75,770 - 123,184 26%
Over 123,184 29%
-Maximum Tax Rate with Ontario taxes = 46.41%