Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Explain the amounts that were excluded from the moving expense deductions. (Select all that apply.) 4. Expenses related to cleaning and minor repairs are not

image text in transcribedimage text in transcribed

image text in transcribedimage text in transcribed

image text in transcribed

image text in transcribed Explain the amounts that were excluded from the moving expense deductions. (Select all that apply.) 4. Expenses related to cleaning and minor repairs are not included because they do not qualify as moving expenses. C. Expenses relating to house hunting trips prior to the move do not qualify as moving expenses. D. The simplified mileage rate is not included because Madhu is keeping detailed receipts when calculating her moving expenses. F. Gas is not included because Madhu is using the simplified method of determining vehicle and food costs in calculating her moving expenses. Calculate the amount of carry forward available at the end of the year. (For entries with a $0 balance, make sure to enter " 0 " in the appropriate input field.) What amount of carry forward is available at the end of the year? Trip costs In September of 2022, Madhu flies to Vancouver to locate a new residence. While she is there, she is unable to locate a property at a price she can afford. After her return to Montreal, she searches online and finally manages to lease a suitable condominium for $2,750 a month. The lease is for 12 months, beginning December 1,2022 . The costs associated with this house hunting trip are as follows. Move information While Madhu will continue to work in Montreal until November 15 , the closing date on the sale of the Montreal house is October 20, 2022. Because of this, all of her furnishings must be put into storage until they are shipped on November 20, 2022. The storage costs are $2,280. In addition, the moving company charges $10,300 for the costs of the move, including packing in Montreal and unpacking at the condominium in Vancouver. During the period October 20, 2022, up to and including November 15, 2022, Madhu stays in a hotel in Montreal. On November 15, 2022, she departs for Vancouver. She drives her own vehicle, arriving in Vancouver on November 24, 2022. She puts 4,555 kilometres on her vehicle in making the trip. As the condominium unit is not available until December 1,2022 , she spends seven nights in a Vancouver hotel. Her expenses for the period October 20, 2022, up to and including December 1, 2022, are as follows. Madhu will use the simplified method of determining vehicle and food costs in calculating her moving expenses as she is not interested in keeping detailed receipts. Assume that the relevant mileage rate for vehicle expenses is $0.55 for Quebec and $0.52 for British Columbia, and the flat rate for meals is $69 per day. Sale of Residence At the beginning of September 2022, Madhu lists her Montreal residence for sale. She had paid $621,000 for the residence several years ago but was only able to sell it for $546,000. Costs associated with this sale are as follows. Employer assistance To assist her with the move, the Vancouver office will do the following. - They will provide her with a $19,000 allowance to cover her general moving expenses. - They will compensate her, in full, for any loss on the sale of her Montreal residence. The loss will be determined without consideration of any selling costs. - They will provide a one-time payment of $9,900 to assist her in dealing with the higher housing costs in Vancouver. Madhu begins working in Vancouver on December 1, 2022. She will claim the maximum moving expense deduction for 2022 . Requirement Determine the amount of Madhu's maximum 2022 deduction for moving expenses and indicate the amount of any carry forward that is available at the end of the year. If any amount is excluded, explain why. Explain the amounts that were excluded from the moving expense deductions. (Select all that apply.) 4. Expenses related to cleaning and minor repairs are not included because they do not qualify as moving expenses. C. Expenses relating to house hunting trips prior to the move do not qualify as moving expenses. D. The simplified mileage rate is not included because Madhu is keeping detailed receipts when calculating her moving expenses. F. Gas is not included because Madhu is using the simplified method of determining vehicle and food costs in calculating her moving expenses. Calculate the amount of carry forward available at the end of the year. (For entries with a $0 balance, make sure to enter " 0 " in the appropriate input field.) What amount of carry forward is available at the end of the year? Trip costs In September of 2022, Madhu flies to Vancouver to locate a new residence. While she is there, she is unable to locate a property at a price she can afford. After her return to Montreal, she searches online and finally manages to lease a suitable condominium for $2,750 a month. The lease is for 12 months, beginning December 1,2022 . The costs associated with this house hunting trip are as follows. Move information While Madhu will continue to work in Montreal until November 15 , the closing date on the sale of the Montreal house is October 20, 2022. Because of this, all of her furnishings must be put into storage until they are shipped on November 20, 2022. The storage costs are $2,280. In addition, the moving company charges $10,300 for the costs of the move, including packing in Montreal and unpacking at the condominium in Vancouver. During the period October 20, 2022, up to and including November 15, 2022, Madhu stays in a hotel in Montreal. On November 15, 2022, she departs for Vancouver. She drives her own vehicle, arriving in Vancouver on November 24, 2022. She puts 4,555 kilometres on her vehicle in making the trip. As the condominium unit is not available until December 1,2022 , she spends seven nights in a Vancouver hotel. Her expenses for the period October 20, 2022, up to and including December 1, 2022, are as follows. Madhu will use the simplified method of determining vehicle and food costs in calculating her moving expenses as she is not interested in keeping detailed receipts. Assume that the relevant mileage rate for vehicle expenses is $0.55 for Quebec and $0.52 for British Columbia, and the flat rate for meals is $69 per day. Sale of Residence At the beginning of September 2022, Madhu lists her Montreal residence for sale. She had paid $621,000 for the residence several years ago but was only able to sell it for $546,000. Costs associated with this sale are as follows. Employer assistance To assist her with the move, the Vancouver office will do the following. - They will provide her with a $19,000 allowance to cover her general moving expenses. - They will compensate her, in full, for any loss on the sale of her Montreal residence. The loss will be determined without consideration of any selling costs. - They will provide a one-time payment of $9,900 to assist her in dealing with the higher housing costs in Vancouver. Madhu begins working in Vancouver on December 1, 2022. She will claim the maximum moving expense deduction for 2022 . Requirement Determine the amount of Madhu's maximum 2022 deduction for moving expenses and indicate the amount of any carry forward that is available at the end of the year. If any amount is excluded, explain why

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions