On September 15, 2018, Mr. Payton moves from Sudbury to Ottawa (Ottawa is 484 kilometers from Sudbury) for a new job. He lived in a rented apartment in Sudbury and purchased a house in Ottawa. The total cost of the actual move, including the costs of moving his personal possessions, was $16,500. During the year, his salary totaled
On September 15, 2018, Mr. Payton moves from Sudbury to Ottawa (Ottawa is 484 kilometers from Sudbury) for a new job. He lived in a rented apartment in Sudbury and purchased a house in Ottawa. The total cost of the actual move, including the costs of moving his personal possessions, was $16,500. During the year, his salary totaled
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter10: Individuals: Income, Deductions, And Credits
Section: Chapter Questions
Problem 16P
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Transcribed Image Text:On September 15', 2018, Mr. Payton moves
from Sudbury to Ottawa (Ottawa is 484
kilometers from Sudbury) for a new job. He
lived in a rented apartment in Sudbury and
purchased a house in Ottawa. The total cost
of the actual move, including the costs of
moving his personal possessions, was
$16,500. During the year, his salary totaled
$60,000, of which $45,000 was earned in
Sudbury and the remaining $15,000 was
earned in Ottawa. As Payton is hired at a
junior level, his new employer is not
reimbursing any of the moving expenses.
Required: Is the amount he paid for
move fully deductible ($16,500)? If not, how
do we treat this amount?
actual
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