Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In 20x4, Tom Depuis moved 2874 kilometers from Anytown, Province-1 to Newtown, Province-2 to assume the position of manager for his company at the Newtown

image text in transcribed
In 20x4, Tom Depuis moved 2874 kilometers from Anytown, Province-1 to Newtown, Province-2 to assume the position of manager for his company at the Newtown head office. Tom began his new job on October 1st. He receives a salary of $5,100 per month at his new job and received $4,500 per month in his former position. Tom has provided you with the following information pertaining to his moving costs: $3,000 16,000 1,000 Legal fees on purchase of new home Payment to a national moving company for the cost of the move Payment to the moving company for container storage until Tom was able to take possession of his new home Commission fees on sale of Anytown home 21 days accommodations at a hotel in Newtown until he took possession of his new home Meals for Tom and his wife and daughter on the two-day trip from Anytown to Newtown. Gas receipts for the two-day trip. (Assume CRA travel rates are 55 cents/km for Province-1 and 45 cents/km for Province-2.) 10,000 2,100 200 Tom received a reimbursement of $15,000 from his employer. Required: A. Calculate the maximum amount of moving expenses that Tom can deduct on his 20x4 tax return. B. Will the moving expenses have any effect on Tom's 20x5 tax return? In 20x4, Tom Depuis moved 2874 kilometers from Anytown, Province-1 to Newtown, Province-2 to assume the position of manager for his company at the Newtown head office. Tom began his new job on October 1st. He receives a salary of $5,100 per month at his new job and received $4,500 per month in his former position. Tom has provided you with the following information pertaining to his moving costs: $3,000 16,000 1,000 Legal fees on purchase of new home Payment to a national moving company for the cost of the move Payment to the moving company for container storage until Tom was able to take possession of his new home Commission fees on sale of Anytown home 21 days accommodations at a hotel in Newtown until he took possession of his new home Meals for Tom and his wife and daughter on the two-day trip from Anytown to Newtown. Gas receipts for the two-day trip. (Assume CRA travel rates are 55 cents/km for Province-1 and 45 cents/km for Province-2.) 10,000 2,100 200 Tom received a reimbursement of $15,000 from his employer. Required: A. Calculate the maximum amount of moving expenses that Tom can deduct on his 20x4 tax return. B. Will the moving expenses have any effect on Tom's 20x5 tax return

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

Recommended Textbook for

Financial Statements Analysis Cases From Corporate India

Authors: Sandeep Goel

1st Edition

1138663921, 9781138663923

More Books

Students also viewed these Accounting questions