Reference no: EM132469452

Point 1: On November, 15, 2018, at the request of his employer, John moves from Halifax to Moncton. 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 totalled $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.

Point 2: During the year, his salary totalled $53,000, of which $6,625 can be allocated to the period after November 15, 2018. His employer is prepared to pay up to $6,000 towards the cost of the move.

Required:

Question i. What is John's maximum moving expense deduction for 2018?

Question ii. What amount of carry forward, if any, is available?