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During the year ended 31 March 2021, Lilian received salaries of $600,000
During the year ended 31 March 2021, Lilian received salaries of $600,000. She leased a flat at $16,000 per month and obtained a refund of $12,000 per month from the employer upon the production of the rental receipts. She exercised a share option during the year and the taxable gain is $78,000. The net amount of rental value taxable is
Expert Solution
The net amount of rental value taxable is $ 30,000.
Rent paid by the employee $ 192,000
Refund of monthly rent (144,000)
Actual rent paid by employee not refunded $ 48,000
Share option exercised (78,000)
Net amount of rental value $ 30,000
Step-by-step explanation
Reimbursable expenses from employer is not included in the employees expenses only the portion that is paid by the employee. The expense paid by the employer is part of the employee benefits.
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