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Determine the maximum amount that can be deducted by Mrs. Sanders for the year ending December 31, 2019 for moving expenses. (Ontario, Canada) At the
Determine the maximum amount that can be deducted by Mrs. Sanders for the year ending December 31, 2019 for moving expenses. (Ontario, Canada)
At the request of her employer, Mrs. Sheila Sanders moves from Vancouver to Ottawa so she can work at the Ottawa head office instead of the Vancouver office. She moves into her residence on July 1, 2019 with her family of 5 (Sheila, her spouse, and 3 children). She earned $200,000 of employment income this year, $100,000 of which related to her work at the Ottawa head office. She incurred a variety of moving expenses related to the move. She will use the simplified method for calculating all mileage and meal costs. Assume that the relevant flat rate for vehicle expenses if $0.58/km for all provinces, and the flat rate for meals is $51 per day per person. The expenses include: 1. They drove from Vancouver to Ottawa during their move. They spent $1,100 on fuel costs during the 4500 km drive, and also required a $60 oil chage. They also switched over to their summer tires, which cost $100. 2. They spent 6 days driving during the course of their move. During these 6 travel days, they spent $600 on take out meals total for the 5 family members. 3. They also spent $1900 on hotels total during the 6 moving daysights as they drove from Vancouver to Ottawa. 4. They paid a moving company $4200 to transport their furniture and belongings in a moving truck across the country. Sheila's employer agreed to directly reimburse her for $1500 of these moving truck costs. 5. Their belongings needed to be stored for several days before it could all be moved in because of a difference between the old residence closing date and the earliest move-in date of the new residence. The storage costs amounted to $750. 6. Three weeks before their move, Sheila took a plane to Ottawa to check out potential houses to buy. The travel costs for this house hunting trip included a $2600 plane ride, $350 in lodging cost, and $200 in meals. 7. Sheila sanders sold her old residence of $250,000. The closing date was May 20, 2019. Sheila paid $2100 in legal fees during the sale of the old residence. Additionally, she paid $26000 in real estate commissions and $2200 in unpaid property taxes to the date of sale. She also paid $500 to clean and make minor repairs to her old residence prior to sale. 8. While Sheila will continue to work in Vancouver until June 1, the closing on the old residence was May 20. During the period from May 20 to June 1 (12 days), Sheila and her family resides in a Vancouver hotel. The temporary living costs associated with this 12 day per include: a. Hotel in Vancouver (12 nights at $165 per night) $1980 b. Food in Vancouver (12 days-total for all five family members) $1,000 9. Sheila and her family departs from Vancouver on June 1 and arrives 6 days later in Ottawa. Their new house is not available until July 1, 2019, so the family spends 24 nights in a hotel in Ottawa. The temporary living costs associated with this 24 day period include: a. Hotel in Ottawa (24 nights at $199 per night) $4776 b. Food in Ottawa (24 days-total for all five family members) $2,000 10. Since the family was moving to a new address in a new province, they needed to replace their driver's licenses and other legal documents, which cost $250 total. At the request of her employer, Mrs. Sheila Sanders moves from Vancouver to Ottawa so she can work at the Ottawa head office instead of the Vancouver office. She moves into her residence on July 1, 2019 with her family of 5 (Sheila, her spouse, and 3 children). She earned $200,000 of employment income this year, $100,000 of which related to her work at the Ottawa head office. She incurred a variety of moving expenses related to the move. She will use the simplified method for calculating all mileage and meal costs. Assume that the relevant flat rate for vehicle expenses if $0.58/km for all provinces, and the flat rate for meals is $51 per day per person. The expenses include: 1. They drove from Vancouver to Ottawa during their move. They spent $1,100 on fuel costs during the 4500 km drive, and also required a $60 oil chage. They also switched over to their summer tires, which cost $100. 2. They spent 6 days driving during the course of their move. During these 6 travel days, they spent $600 on take out meals total for the 5 family members. 3. They also spent $1900 on hotels total during the 6 moving daysights as they drove from Vancouver to Ottawa. 4. They paid a moving company $4200 to transport their furniture and belongings in a moving truck across the country. Sheila's employer agreed to directly reimburse her for $1500 of these moving truck costs. 5. Their belongings needed to be stored for several days before it could all be moved in because of a difference between the old residence closing date and the earliest move-in date of the new residence. The storage costs amounted to $750. 6. Three weeks before their move, Sheila took a plane to Ottawa to check out potential houses to buy. The travel costs for this house hunting trip included a $2600 plane ride, $350 in lodging cost, and $200 in meals. 7. Sheila sanders sold her old residence of $250,000. The closing date was May 20, 2019. Sheila paid $2100 in legal fees during the sale of the old residence. Additionally, she paid $26000 in real estate commissions and $2200 in unpaid property taxes to the date of sale. She also paid $500 to clean and make minor repairs to her old residence prior to sale. 8. While Sheila will continue to work in Vancouver until June 1, the closing on the old residence was May 20. During the period from May 20 to June 1 (12 days), Sheila and her family resides in a Vancouver hotel. The temporary living costs associated with this 12 day per include: a. Hotel in Vancouver (12 nights at $165 per night) $1980 b. Food in Vancouver (12 days-total for all five family members) $1,000 9. Sheila and her family departs from Vancouver on June 1 and arrives 6 days later in Ottawa. Their new house is not available until July 1, 2019, so the family spends 24 nights in a hotel in Ottawa. The temporary living costs associated with this 24 day period include: a. Hotel in Ottawa (24 nights at $199 per night) $4776 b. Food in Ottawa (24 days-total for all five family members) $2,000 10. Since the family was moving to a new address in a new province, they needed to replace their driver's licenses and other legal documents, which cost $250 total
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