Agatha earned $35,000 at her job during January 1st - October 10th of 20X4. She accepted a new position with the company in a town 1312 kilometres away and began the new job on November 1st, 20X4, earning a gross salary of $4000 per month.
Agatha's moving expenses included:
$7,000 for a moving van
$300 for meals en route for Agatha and her 4 year old daughter on the four day drive
$700 for accommodations en route
$3000 ($150 per day) for 20 nights of temporary lodging in the new location until her apartment was available.
$550 in gas receipts
She was not reimbursed for the move.
Agatha also received the following in 20X4:
Support payments from her former spouse ($36,000 x 12)* $36,000
*The support payments are in accordance with Agatha's divorce agreement,
which calls for monthly support payments of $1,500 for Agatha and $1,500 for her daughter.
Additional information: Assumed mileage rates:
Required:
A) Calculate Angela's total moving expenses.
B) Determine Agatha's minimum net income for tax purposes for 20X4, using th aggregate formula (section 3 of the Income Tax Act) to show your work.
Correct Answer:
Verified
Moving expenses
$7,000 moving van
$40...
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