Problems $(25$ points$)$

$1.-$ Mr$.$ Lawrence Harvey has been employed in Halifax for many years. In $2023$ he decides on a change of location and asks his employer for a transfer to another location.

Lawrence and his employer agree on a move to the company's main office in Ottawa.

Lawrence will begin in the Otawa office at the beginning of December, $2023.$ Lawrence's salary is $$8,000$ per month.

Lawrence sells the home he owned in Halifax in October of $2023$ for $$435,000.$ As he was anxious to sell quickly, he realizes a loss on the sale of $$52,000.$ Costs associated with the sale of his Halifax residence are as follows:

Real Estate Commissions

Legal Fees

Unpaid Property Taxes to date of sale

Cost of cleaning and minor repairs prior to sale

$$21,000$

$800$

$1,500$

$3,800$

In October of $2023,$ Lawrence flies to Ottawa to find a new home. As he lives alone, he decides to lease a condominium. After $2$ days, he finds a suitable property which he leases for $$2,500$ a month, beginning November $1.$ He remains in Ottawa for an additional $4$ days in order to purchase furniture, appliances and other household effects.

The expenses associated with the house hunting trip to Ottawa are:

Air Fare $-$ Return

Rental Car Costs $(6$ Days$)$

Hotel $(6$ Nights at $$200)$

Food $(6$ Days $-$ Total$)$

$$1,250$

$420$

$1,200$

$510$

His employer has agreed to the following assistance towards the move:

$$ An $$18,000$ allowance to cover his general moving expenses.

$$ Compensation, to the extent of $$30,000,$ for the loss on the sale of his house in Halifax.

All of these amounts will be paid by the Ottawa office in December of $2023.$

On November $7,$ Lawrence leaves for Ottawa by air. Because the acquired furnishings and appliances have not been delivered yet, he has to live in an Ottawa hotel until

November $25.2.-$ Mr$.$ John Klaus carries on a business as a sole proprietor which uses a December $31$ fiscal period. In $2022,$ its first year of operation, there is $$19,000$ of business income and a taxable capital gain of $$3,000[(1/2)($$$6,000)].$ The following amounts relate to the $2023$ taxation year:

Business Loss

$($$$56,000)$

Taxable Capital Gains

$1,600$

Allowable Capital Losses

$(4,900)$

Mr$.$ Klaus has no other types of income or deductions in either year. Assume that he wishes to minimize any net capital and non$-$capital losses, without regard to his ability to claim his tax credits for the preceding $2022$ year. Calculate his $2022$ and $2023$ net and taxable income plus any amended amounts for $2022$ as a result of loss carryovers.

Indicate the amount and type of any losses available for carry forward to other taxation years. $(6$ points$)$