Reference no: EM132604583

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

Question 1: Identify the total salary for the year .

Question 2: Identify the total salary for portion earned in Moncton

Question 3: Determine Mr. Havlik's maximum moving expense deduction for 2019 as well as any carry forward available