Question
On November 15, 2019, at the request of his employer, Mr. John Smith moves from Halifax to Bay of Fundy (of Fundy is kilometers from
On November 15, 2019, at the request of his employer, Mr. John Smith moves from Halifax to Bay of Fundy (of Fundy is kilometers from Halifax). He lived in a apartment in Halifax, but has purchased a house in Bay of Fundy Legal fees and other costs associated with the acquisition of this house totaled $3,250. The total cost of the actual move , including the costs of moving his personal possessions , $8,300 . In addition , he spent $650 on a house hunting trip to Bay of Fundy , but he did not decide on a house until his return to Halifax . He also incurred a $1,200 penalty for breaking his lease in Halifax During the year , his salary totaled $53,000 , of which $6,625 can be allocated to the period after November 15, 2019. His employer is prepared to pay up to $6,000 towards the cost of the move . Required (10 marks ) (Recommended time : 15 mins ): Identify the total salary for the year . 2. Identify the total salary for portion earned in Moncton 3. Determine Mr. Havlik's maximum moving expense deduction for 2019 as well as any carry forward available .
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