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On November, 15, 2020, at the Request of His Employer

Question 116

Essay

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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