Question
Can you Please explain me this Problem? Thanks! Agatha earned $35,000 at her job during January 1 st to October 10th of 20x4. She accepted
Can you Please explain me this Problem? Thanks!
Agatha earned $35,000 at her job during January 1st to October 10th of 20x4. She accepted a new position with the company in a town 1312 kilometres away and began the new job on November 1st, 20x4. She earned a gross salary of $8000
after her move.
Agatha's moving expenses included:
$7,000 for a moving van
$300 for meals en route for Agatha and her 4-year-old daughter on the four-day drive
$700 for accommodations en route
$3000 ($150 per day) for 20 nights of temporary lodging in the new location until her apartment was available
$550 in gas receipts
She was not reimbursed for the move. Agatha also received the following in 20x4:
Support Payment from her former spouse ** 26,000
Inheritance 25,000
Scholarship for part-time tuition in a qualifying education 25,000
program (used to cover her tuition)
RRSP withdrawal (not withdrawn under the Lifelong Learning Plan or Home Buyer's Plan) 15,000
Lottery winnings 15,000
**The support payments are in accordance with Agatha's divorce agreement, which calls for monthly support payments
of $1,500 for Agatha and $1,500 for her daughter.
Additional information, Assumed mileage rates:
New Location $.50 per km
Previous Location $.47 per km
Required: Determine Agathas minimum net income for tax purposes for 20X4 in accordance with the section 3 formula.
Show all calculations for moving expenses and identify any amounts to be carried forward.
Ignore the CPP enhanced deduction.
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