Michael accepted a job transfer and moved from Kingston to Toronto to pursue his new responsibilities. Which
Question:
Michael accepted a job transfer and moved from Kingston to Toronto to pursue his new responsibilities. Which one of the following payments by Michael’s employer related to this movie would NOT be considered a taxable benefit in the computation of Michael’s tax return for the year of the move?
A. mortgage subsidy payment to offset the larger mortgage interest payments created by a higher mortgage principal amount due to higher housing prices in Toronto.
B. The costs of revising legal documents to reflect Michael’s new address, replacing Michael’s driver’s license and automobile permit, and costs to connect utilities in Michael’s Toronto residence.
C. An undocumented allowance of $2,000 related to travel costs in connection with the move, selling costs for Michael’s Kingston home, and legal fees in connection with the acquisition of a house in Toronto.
D. A tax equalization and cost-of-living payment were made to compensate Michael for higher property taxes and higher living costs in Toronto.
Essentials of Investments
ISBN: 978-0078034695
9th edition
Authors: Zvi Bodie, Alex Kane, Alan Marcus