Question
On December 12, 2020, at the request of his employer, Mr. Sol Gudman moves from Moncton to Montreal. He has always lived in a rented
On December 12, 2020, at the request of his employer, Mr. Sol Gudman moves from Moncton to Montreal. He has always lived in a rented apartment and will continue to do so in Montreal. The total cost of the actual move, including the costs of moving his personal possessions, was $9,315. In addition he spent $1,838 on a visit to Montreal to find suitable accommodation. He also had to pay $1,498 as a penalty to cancel the lease on his Moncton apartment. During 2020, his salary was $64,000 of which $2,420 was earned from his new work location in Montreal. His employer will reimburse him $5,215 for his moving costs in 2020.
Mr. Gudman claims the maximum amount as a moving expense when calculating his net income for tax purposes in 2020. What amount of his moving expenses will he have available to carry forward?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started