Question

In Canada, Arsenio is moving from Ontario to Alberta for work. He purchased a one-way plane ticket for $440. The distance from his old residence (in Ontario) to his new residence (in Alberta) is 3,300 km. The per kilometre rate for Ontario in 2022 is $0.615, and $0.55 for Alberta. His income at the new location is $104,000 and he has not been reimbursed by his employer. His travel is the only expense he is claiming as a moving expense. How much can he claim on Line 21900?

A. $0
B.$440
C. $1,650
D. $2,029.50

Answer 1

Arsenio can claim the actual moving expenses incurred, which is the cost of his one-way plane ticket at $440. This is less than the per kilometre rates calculated for Ontario and Alberta, so the correct amount he can claim on Line 21900 is B. $440.

Step-by-step explanation:

The question relates to calculating eligible moving expenses on Line 21900 for tax purposes in Canada. According to the information provided, Arsenio can claim the lesser of the actual expenses incurred or the amount calculated using the per kilometre rates for the provinces involved in the move. The calculation would be as follows:

• Ontario per kilometre rate: $0.615 x 3,300 km = $2,029.50
• Alberta per kilometre rate: $0.55 x 3,300 km = $1,815.00

Arsenio's actual expense is the cost of the one-way plane ticket: $440. He can claim the actual amount spent on moving expenses, since it is less than both of the per kilometre amounts.

Therefore, the answer is B. $440, which is the amount Arsenio can claim on Line 21900 for his move from Ontario to Alberta.