1.2.3.4 Mr. Tully resigned from his job in Calgary on September 30 of the current year, after completing his executive MBA. His new position at a high tech firm in Ottawa started on December 1. In October, Mr. Tully flew to Ottawa to find a new home for himself and his family. While he located a suitable house and signed the purchase agreement after four days in the city, finalizing all of the details associated with the purchase required him to remain in Ottawa for another three days. His expenses for this trip were as follows: Air fare (Calgary - Ottawa, Return) $ 675 Car rental (7 days at $30) 210 Hotel (7 nights at $90) 630 Food (7 days - total) 210 On his return to Calgary, he received the following information from his lawyer: Real estate commission - old home $ 9,000 Legal fees - old home 1,500 Unpaid property taxes on old home to date of sale 1,200 Legal fees - new home 1,750 Transfer tax on new home 1,100 On November 20 of the current year, after supervising the final packing of their property and its removal from the old house, Mr. Tully, his wife and three children fly to Ottawa. Because of some delays in the renovation of their new home, they are unable to move in until November 30. Their expenses during the period November 20 through November 30 are as follows: Airfare - one way $1,250 Hotel (10 nights at $225) 2.250 Food (10 days. total) 1,650 The moving company invoice totals $4,500. Induded in the fee is $450 for the 8 days of storage required because the furniture could not be moved into the new home on its arrival in Ottawa. Mr. Tully also paid $900 to ship his SUV from Calgary to Ottawa. Mr. Tully's only income for the current year was employment income and the net amounts to be included in his Net Income For Tax Purposes are as follows: Old job (9 months) $54,000 New job (1 month 8,000 Net Employment Income $62.000 Mr. Tully's new employer did not provide any reimbursement for moving expenses. Mr. Tully will use the simplified method of determining food costs in calculating his moving expenses. Assume that the flat rate for meals is 551 per person per day Required: Calculate the maximum allowable moving expenses that Mr. Tully can deduct from his Net Income For Tax Purposes for the current year and any amount that can be carried forward