# Calculating the Value of the Operating-Costs Benefit

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If you or a person related to you pays expenses related to the personal use of an automobile made available to an employee or to a person related to the employee, you must include a benefit related to automobile operating costs in the employee's income.

You can use work chart TP-41.C-V, Calculation of an Automobile Benefit, or either of the methods below to calculate the value of the operating-costs benefit.

## Basic calculation method

Under the basic calculation method, the operating-costs benefit related to the personal use of an automobile is \$0.28 per kilometre for 2019 and 2020. If an employee principally sells or leases automobiles, the benefit is \$0.25 per kilometre.

## Simplified calculation method

You can use the simplified calculation method if both of the following conditions are met:

• The employee uses the automobile primarily (more than 50%) in the performance of his or her duties.
• The employee notifies you in writing, before the end of the year, of their intention to use the simplified method to calculate the operating-costs benefit.

Under this method, you calculate the operating-costs benefit at one-half of the reasonable amount that is the standby charge before deducting any amounts reimbursed by the employee for the standby charge.

## Amounts reimbursed by the employee for operating costs

If, in the year or within 45 days after the end of the year, the employee (or a person related to the employee) reimburses you (or a person related to you) for the operating costs (including taxes) related to the employee's personal use of an automobile (or the personal use of an automobile by a person related to the employee) in the year, the employee receives no taxable benefit.

If only a portion of these costs is reimbursed, subtract the amount reimbursed from the employee's operating-costs benefit.

For sample calculations of the operating costs, see guide IN-253-V, Taxable Benefits.

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