Question

Ahmed and his daughter Zeinab moved from Ontario to Nova Scotia during 2019 for work, which he began right away. Their moving expenses include the following items:

Movers —packing and transporting furniture and belongings $6,000

Selling costs of Ontario home 4,000

Legal costs to acquire new home in Nova Scotia1,250

Costs related to vacant former home while up for sale 5,500

Costs to repaint new home 4,000

Gas to drive family car to Nova Scotia 200 (no km information given)

Two nights in hotel for the family 400

Meals during the trip to Nova Scotia 200 ($51/person/day)

For tax purposes, Ahmed would like to use the detailed method for calculating gas and meals expenses related to moving.

Calculate Ahmed’s deductible moving expenses.

Answer 1

Calculation of Ahmed's Deductible Moving expenses:-

• Movers - Packing & Transporting Furniture & Belongings = $ 6,000 (Deductible Moving Expense)

You can deduct the cost of packing, crating & Transporting your household goods & Personal effects and those of the members of your household from your former home to your new home. For purpose of moving expenses, the term "personal Effects" includes, but isn't limited to, movable personal property that the tax payer owns and frequently uses.

• Selling Cost of Ontario Home = $ 4,000 ( Non-Deductible Moving Expense)
• Legal Cost to Acquire New Home = $ 1250 ( Non-Deductible Moving Expense)
• Cost Related to Vacant Former Home while up for Sale = $ 5500 ( Non-Deductible Moving Expense)
• Cost to Repaint New Home= $ 4,000 ( Non-Deductible Moving Expense)
• Gas to drive family car to Nova Scotia = $ 200 ( Deductible Expense)

Moving expense for gas is 18 cents per mile , but here information about miles is not given therefore we can take actual expense of $ 200 to be deductible moving expense)

• Two Nights in the Hotel for the Family = $ 400 ( Deductible Expense)
• Meals during the Trip = $ 200 ( Non-Deductible Expense)

Total Deductible Moving Expense = $ (6000 + 200 + 400) = $ 6,600