• The use of a home-based desktop computer

    The taxable value of the use of a desktop computer is equal to the hiring cost for a similar computer, reduced by the otherwise deductible component. Where the equipment is leased by an entity under arm's length arrangements, the actual rate paid should be used. Where the equipment is owned by an entity or leased under a non-arm's length arrangement, rental rates can be obtained from a company that is in the business of leasing computer equipment. The lowest rate obtained from such a company, for a similar computer over a similar hire period, could be used.

      Last modified: 17 Jul 2012QC 21998