Norman moved from the Ottawa office of Safety Corp. to the head office in Toronto, in October of the current year. He incurred a loss of $35,000 on the sale of his Ottawa home after it had sat empty for five months while the real estate agent tried to sell it. The real estate commission of $20,000 and the legal fees of $1,200 are included in the $35,000 loss. In addition, he incurred the following costs with respect to the move:

• Airline ticket ($1,000), hotel room for two nights stay ($400) and meals ($100) when Norman and his wife made a trip to Toronto to search for a new home—$1,500
• Purchase price of new home—$420,000
• Legal fees and land transfer tax on purchase of new home—$1,800
• Moving company to pack their belongings and move them to their new home in Toronto— $6,000
• Gasoline and other car expenses plus two meals for each of the five family members. Norman drove himself and his family from Ottawa to their new home in Toronto (450 km)—$210
• Cost of carrying Ottawa house for five months while vacant (mortgage interest, property tax, and utilities)—$7,200
• Cost of revising legal documents to reflect the new address—$25
• Norman’s T4 slip showed employment income for the year of $120,000 of which $30,000 was earned after his move to Toronto.
• Determine Norman’s maximum deduction for moving expenses for the current year. Income tax reference: ITA 62; IT-178R3.