company vehicle and child support calculation

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Sebastien1

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Hello, my ex spouse has a company vehicle that is used for sales call, to go to work and for personnal use. It is her only vehicle and it is fully leased, maintained and inusred by the company. The company also pays the gas.
Does anyone know how to account for that in her salary for calculation child support payment? The lawyer does not seem to have a clue (!) .
 
it would be considered a taxable bennifit for her sois looked at as income. You would have to just find out what thoses costs to the employer are. Is she being paid a mileage rate. ie 40cents per km.
 
Hello, thank you for your input! She does not get paid a mileage. She just gets a vehicle 100% paid for by the company, some of which she uses for business, some of it personal.

I am trying to figure out how much of that must go into her income. She says that she uses the vehicle 80% business, 20% personal, therefore this is what should be added as her income. Since it costs way more than that to lease, insure and maintain a personal vehicle, I do not agree with the numbers. I cannot find a rule for that and was wondering if anyone on the forum has had the same situation. Thanks!
 
I am not sure either if there is any type of formula that you could use. I am speaking as a cert payroll admin for this one. I know that If I pay my employees insurance and other bennifits and the like they are considered 100% taxable and there fore are considered 100% income to the employee. (yes there are some items that are not taxable).

I will give a scenario Her wages may be 35,000/yr. It doesnt matter that I am paying these things for her bennifit or even if I give her moneyproper for them she would have to claim them in the income to CRA. So say 2500ins. etc etc that would bring her income to 37,500 that would be her gross and what a court would use as well. What ever tax write off she may be allowed do not factor into the Gross pay.For purposes of imputing income well all of it gets counted.
So as I mentioned earlieryou need to find out what dollar wise is actually paid and then just add it to her base salary/wage.

Hope that helps.
 
company vehicle

company vehicle

Thanks for the input. So that would mean that if the lease on the vehicle is let's say 10K, that would be added to the income regardless of the company vs personal use?
 
Just happened to stumple onto this post. I was working on a calculation for a person who had exactly this dilemma. If you have her T4, this should be reflected as Box 34 in the other information section. This amount is already included in Box 14 of the T4. So if you are looking at line 101 of her T1, that amount would already be included in there. If you are adding it to her current base salary, then add box 34 to her current base salary. Hope that helps.
 
Thanks Desperate dad. Box 34 says 4k. However the car expenses (lease insurance gas) are around $18. Even with company use of this car seems to me that the 4k is way too low (a lease vehicle plus insurance plus gas for personal use would simply cost way more than that) and was minimized for income tax purpose.
 
Yes that is where you wouldfind it allon the T4.
Has she ever supplied you with any of the actual numbers as opposed to just a lump sum of the $4000. That number may not be so unreasonable. It is likely that the company would be getting group discounts on insurances for all thier vehicles and her # of yrs driving would contribute as well. So may not be as high as if she were to do it on her own per say. With out knowing what kind of vehicle or deal the company may have made on a lease hard to guess. If you know the make etc you could go to a dealer and ask about that specific vehicle and what a typical lease may be.

Say if the insurance is 200/mon, lease 300/mon that would be $6000/yr. all that is just a wild guess on my part. But it is likely that gas/maint are just a expense for the business.She may just submit the billsand no other bennifit is imputed to her for that area.
 
$4k doesn't sound so off the wall.

Yes, there is a taxable benefit to her. But 100% of the cost of the vehicle is not taxable as personal use.

Just because it costs the company $10k per year or whatever to lease, insure and maintain the vehicle, doesn't mean your ex receives 100% of that as a taxable benefit as she isn't on title. Any equity in the vehicle would be owned by the company should they choose to purchase out the lease.

I can't see how or why a judge would impute 100% of the cost of a company vehicle as income, especially considering that the person does not get 100% of the benefit (yes, they get to drive it. But there is more to the equation then driving. There is equity, write-offs, depreciation and I am sure a mirade of other things to be factored in which the owner, the company, may take into consideration).
 
I think the $4k is reasonable.

I track my expenses closely. My total costs for my car (insurance, gas, upkeep, fees), is $4600. This does not include lease etc because I own the car, but it is a car I have had for 10 years.

She could also drive a cheap vehicle if she had to supply her own and incur only $4k of expenses. The fact the company supplies her with a car that is new and has a lease, is not her choice, and is not income.

You are not being reasonable when you talk about $18K. Leave it alone, it is already being taking into account on her tax return.
 
Hello There,

I'm a person who has a company car and my company pays for gas, repairs, insurance etc and it is a taxable benefit..I agree that $4000.00 could be accurate, your evaluation at $18,000 is way to high. Mine was $1800.00 last year. It all depends how many Km's are personal and how many are business Km's. The company basis their figures off of this information. You may be disappointed to realize you may not get much more support based off of her company vehicle.
 
For what it's worth....
I also have a company vehicle.
My ex tried to have income imputed to me due to the benefit I get from it.
She reviewed my weekly expense reports for a 2 year period. She went to a dealership to try to figure out the value of the vehicle (what it would cost me to lease it). Reviewed all my mileage reports etc for a 2 year period.
Probably spent 40 or 50 hours in total going over everything.
In the end she asked to have about $20K per year imputed to my income.
I, like most people that have a company vehicle, have a taxable benefit assigned to us based on the personal usage, personal gas we put in and various other calculations done, in my case, by the leasing company we use.
It appears on my T4 just like the other posters have said.
At the end of the day the judge thanked her for her materials and went with my calculations based on the documents I had from the leasing company and my T4's.
His reasons were that basically it was all guess work to try to determine the "value" that I get out of the vehicle using her system.
It is my experience that judges like to use the path of least resistence when making determinations like this.
Besides, my ex is basically nuts and the judge knew this....
Save yourself a lot of time and effort and go with what her T4 says. Cost you more in the long run to do much more.
 
Boy, after reading this ....Im getting the bad end of the deal.
My ex uses his car for work, gets reimbursed for mileage, paid yearly for his car. I believe ina promotion letter they paid him 5,000 for his car initially. In his documents he has stated $10,000. and we agreed to deduct that amount from his salary (plus travel costs to visit his son).

Going forward, I think lucky for me, the final agreement thats JUST this week been put in place says child support minus the car expense so when I need recalculation that will play a part.
Im kind of feeling stupid for just settling and hoping that this goes away. Thank you everyone for the information. I greatly appreciate the calcualtions and information provided.
 
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