BUS 345 Chapter 9 Example Question #2 - Moving costs On December 1, 2012, at the request of his employer, Mr. Ian Scott moves from Vancouver to Cranbrook. He lived in a rented apartment in Vancouver but has purchased a house in Cranbrook. Legal fees and other costs associated with the acquisition of this house totaled $2,000. The total cost of the actual move, including the costs of moving his personal possessions, is $5,000. In addition, he spent $400 on a house hunting trip to Cranbrook, but he did not decide on a house until his return back to Vancouver. He also incurred a $1,000 penalty for breaking his lease in Vancouver. During the year, his salary totaled $60,000, of which $2,500 can be allocated to the period after December 1, 2012. His employer is prepared to pay up to $5,000 towards the cost of the move. Required: Determine Mr. Scott's maximum moving expense deduction for 2012, as well as any carry over available