On November, 15, 2020, at the request of his employer, Mr. John Havlik moves from Halifax to Moncton (Moncton is 260 kilometers from Halifax). He lived in a rented apartment in Halifax, but has purchased a house in Moncton. 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, is $8,300. In addition, he spent $650 on a house hunting trip to Moncton, 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, 2020. His employer is prepared to pay up to $6,000 towards the cost of the move. Determine Mr. Havlik's maximum moving expense deduction for 2020, as well as any carry forward available.
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