Simplified SUMMARY:
You have to move more than 40 KM's closer to your work or school to be able to write off the moving expenses against income earned from the new location.
For those who like a little more detail:
You may be able to claim some of your moving expenses if you moved more than 40 km's closer to:
- A new place of business/work in Canada
- Become a full-time post secondary student in Canada
To be eligible:
- You must have sold or rented out the old residence.
- The old and new residence must be located in Canada.
- Any moving expenses reimbursed by an employer cannot be claimed.
- The moving expense claim cannot exceed your income for the year.
NOTE: Expenses not claimed can be carried forward to the next year.
Eligible Moving Expenses:
- Travel expenses including vehicle, meals, and accommodation expenses to move the family to the new residence. There are simplified options, so you don't have to keep receipts for gas and meals.
- Temporary living expenses for up to 15 days to accommodate the family near the old and new residence.
- Moving costs including packing, hauling, moving, storage, and insurance. This includes Uhaul rental fees.
- Incidental costs such as utility connections and disconnections, legal documents, drivers licenses, and personal vehicle permits.
- Lease cancelation fees.
- If you sold your old residence:
- Real estate commissions, legal, and other selling fees
- Legal and registration fees for the purchase of the new residence
- Up to $5,000 to maintain the vacant residence including mortgage interest, property taxes, insurance and utility costs.
NOTE: You must have made a reasonable effort to sell the property.
Check out the moving expense worksheet at Worksheets | TaxTeam for more information and a template to help you report these expenses.
A tax professional at TaxTeam can discuss this and other credits and deductions that may affect your taxes. Call 306-694-4829 or visit www.taxteam.ca
