Jordy is employed with CHAN Ltd., an international corporation. Jordy lives in Vancouver at the beginning of last year, but CHAN Ltd. moved her to
Jordy is employed with CHAN Ltd., an international corporation. Jordy lives in Vancouver at the beginning of last year, but CHAN Ltd. moved her to Toronto effective December 1st, 2022. Jordy owned a three-bedroom townhouse in Vancouver which she sold so that she could purchase a two-bedroom house in Toronto on December 20. Susan has supplied you with the following information concerning her moving costs:
Air transportation for Susan........................................................................ | $2,500 |
Moving Costs.................................................................................................. | $3,800 |
Temporary living expenses (hotel and meals) in Toronto for 20 days | $3,500 |
Storage fees.................................................................................................... | $1,250 |
Legal fees to purchase new home............................................................. | $1,900 |
Replacement of Driver’s License for new location................................. | $100 |
Cost Jordy incurred searching for the new house................................. | $300 |
Land Transfer Tax........................................................................................... | $8,000 |
Moving allowance paid by IBM. Ltd.......................................................... | $8,000 |
Jordy’s net employment income in Toronto December 1–31 ........... | $10,600 |
Jordy put the Vancouver house for sale on August 1st and it was sold and closed by December 1st, 2022.
Jordy incurred the following expenditures related to the Vancouver home in 2022 before it was sold:
Legal fees related to sale | $1,600 |
Real estate commission on sale | $6,000 |
Insurance from Aug 1st to Dec 1st | $60 per month |
Property taxes from Aug 1st to Dec 1st | $560 per month |
Utilities from Aug 1st to Dec 1st | $190 per month |
Mortgage Interest Aug 1st to Dec 1st | $540 per month |
Gardening from Aug 1st to Dec 1st | $500 |
Assume that Jordy wants to apply all the possible expenses so she can to maximize her moving expenses. What is the deductible amount of moving expenses that Jordy can claim in her personal income tax return for the year of the move in 2022? Please remember to give Jordy your advice for the following year 2023. In addition, comment on the items not included in your calculations of moving expenses.
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Total deductible moving expenses incurred in 2022 Air transportation 2500 Moving costs 3800 Temporar...
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Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen
2nd edition
978-0538473484, 538473487, 978-1111879044
