Mini-Case E: (2.5 marks)

After 13 years of schooling, Lindsay graduated from the University of Toronto in April 2019 as a neurosurgeon and landed a fabulous job in Montreal a month later. She had always lived in Toronto, Ontario but this was a great career opportunity, so she decided to move last May.

a)Lindsay is ready to file her 2019 Federal personal income tax return. She knows that certain moving expenses are deductible against her new employment income so she knew to keep all her receipts in case she would be audited by Canada Revenue Agency (CRA).With each bullet point below, help Lindsay determine which moving expense she can claim as a Federal deduction (highlight and underline your response). (2 marks-.25 marks each)

CRA link may be helpful:

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-21900-moving-expenses/you-claim-moving-expenses-12.html

Moving truck costs

Yes or No

Storage costs for her household items

Yes or No

Hotel costs for her overnight stay midway in Kingston, Ontario

Yes or No

Multiple flights to and from Montreal to Toronto for job hunting

Yes or No

Cost of cancelling her leasefor her old rented apartment

Yes or No

Mail-forwarding costs with Canada Post

Yes or No

Costs for cancelling the hydro and internet disconnections

Yes or No

Meal expenses

Yes or No

b)Lindsay made a Registered Retirement Saving Plan (RRSP) contribution based on her CRA Notice of Assessment, which shows her the RRSP deduction limit (i.e. how much she can contribute - note: her RRSP carry-forward amounts are nil as she has always maximized her annual contributions). She will claim the maximum contribution as a deduction in her 2019 personal income tax return. If she is in the highest marginal tax bracket, what will be her refund? (ignore Non-Refundable Tax Credits) (see Tables A, D) (.25 mark)

Calculate: (.25 mark)

c)Lindsay has always filed a personal tax return each year since she was 18 years old when she started her residency. Now that she is 30 years old, she is happy that she did so as she has a large tuition amount carried forward that she will claim against her employment income. In 2019 she will be claiming $10,000, after applying the Federal tax credit rate, what will be the amount claimed? (see Table B) (.25 mark)

Calculate: (.25 mark)