Question
In 2020, Gael Villeneuve was transferred by COOL Co. to run a small branch of the company. Gael moved 2874 kilometers from Big-city to Small-town
In 2020, Gael Villeneuve was transferred by COOL Co. to run a small branch of the company. Gael moved 2874 kilometers from Big-city to Small-town to take on the new position. Gael began the new job on October 1 st. The new position pays $5,100 per month which is an increase from $4,500 at the former position. Gael has provided you with the following information pertaining to the 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 Gael was able to take possession of the new home | 1,000 |
Commission fees on sale of Big-city home | 10,000 |
21 days accommodations at a hotel in Small-town | 2,100 |
Meals for Gael, Gaels spouse, and their child, on the two-day trip from Big-City to Small-town. | 200 |
Gas receipts for the two-day trip. (Assume CRA vehicle rates are 55 cents/km for the province of origin and 45 cents/km for the province of destination.) | 450 |
Gael received a reimbursement of $15,000 from COOL Co. to assist with the moving expenses. Required: A. Calculate the maximum amount of moving expenses that Gael can deduct on the 2020 tax return. B. Will the moving expenses have any effect on Gael's 2021 tax return?
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