Question
In 2019, Sylvia Barton moved 2874 kilometers from Anytown, Alberta to Newtown, Nova Scotia to assume the position of manager for the Newtown head office.
In 2019, Sylvia Barton moved 2874 kilometers from Anytown, Alberta to Newtown, Nova Scotia to assume the position of manager for the Newtown head office. Sylvia began her new job on October 1st. She receives a salary of $5,100 per month at her new job and received $4,500 per month in her former position. Sylvia has provided you with the following information pertaining to her moving costs:
Legal fees on purchase of new home | $3,000 |
Payment to a national moving company for the cost of the move | 16,000 |
Payment to the moving company for container storage until Sylvia was able to take possession of her new home | 1,000 |
Commission fees on sale of the Anytown home | 10,000 |
21 days accommodations at a hotel in Newtown until she took possession of her new home | 2,100 |
Meals for Sylvia and her husband and daughter on the two-day trip from Anytown to Newtown. | 200 |
Gas receipts for the two-day trip. (Assume CRA travel rates are 55 cents/km for Alberta and 45 cents/km Nova Scotia.) | 450 |
Sylvia received a reimbursement of $15,000 from her employer. Required: (12 marks)
- Calculate the maximum amount of moving expenses that Sylvia can deduct on her 2019 tax return. (11 marks)
Will the moving expenses have any effect on Sylvia's 2020 tax return? Explain
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