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 1^st. 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:
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?

Question

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 1^st. 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:

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?

Quizplus · Accepted Answer

The Answer is A.
A. *Maximum - 15 days allowed

*Maximum - 15 days allowed

In 20x4, Tom Depuis Moved 2874 Kilometers from Anytown, Province-1