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
move 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, to replace
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 made to compensate Michael for higher
property taxes and higher living costs in Toronto.