Jean Brochet uses an automobile in his unincorporated business. It cost $53,000

Question

Jean Brochet uses an automobile in his unincorporated business. It cost $53,000 in 20X4, with maximum CCA being deducted in that year. The purchase was financed with a bank loan of $37,000. For 20X5, the interest on this loan was $4,440. The automobile is used exclusively for business purposes, with the 20X5 operating costs totaling $7,500.

In determining his 20X5 Canadian business income, his maximum automobile related deduction will be:

$19,590.

$18,800.

$24,665.

$20,150.

$19,590.

$18,800.

$24,665.

$20,150.

Explanation / Answer

Option C. 24,665$

Things those will deductions = loan deduction will be 300$ per month, Interest amount and part of operating cost

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