Moving Expenses

  • Moving expenses are one of the most significant tax write-offs available to individuals, and also one of the most frequently reviewed areas by CRA.  Our team of professionals can help ensure you get the maximum write-off and take the stress out of dealing with a CRA review.  The following pamphlet contains some basic information on moving expenses – call our office to set up an appointment if you would like us to prepare your tax return and moving expense claim.

Are You Eligible?

You are eligible to claim moving expenses if both of the following apply:

1.     You moved and established a new home to be employed or run a business at a new location

2.     Your new home is at least 40km closer to your new place of work than your previous home was

Eligible Moving Expenses

Below is a list of eligible moving expenses per the CRA. If you are eligible to claim amounts for moving expenses you will need to provide the following:

·       The receipts and supporting documents for all the moving expenses you wish to claim. If you have questions to this regard please call to discuss.

·       A letter from the employer at the new work location confirming:

  • The date you or your spouse changed work locations;
  • If you or your spouse were reimbursed for all or any part of the moving expense;

·       The amount the employer paid and if this amount was included in your or your spouse’s T4 or T4A slip.

·       The complete address of the;

  • old and new residence;
  • new business or place of employment

Transportation and storage costs (such as packing, hauling, movers, in-transit storage, and insurance) for household effects, including items such as boats and trailers.

Travel expenses, including vehicle expenses, meals, and accommodation, to move you and members of your household to your new residence. You can choose to claim vehicle and/or meal expenses using the detailed or simplified method.

Temporary living expenses for up to a maximum of 15 days for meals and temporary accommodation near the old and the new residence for you and members of your household. You can choose to claim meal expenses using the detailed or simplified method. If you choose the simplified method, although you do not have to submit detailed receipts for actual expenses, the CRA may still ask you to provide some documentation to establish the duration of the temporary lodging.

Cost of cancelling a lease for your old residence, except any rental payment for the period during which you occupied the residence.

Incidental costs related to your move which include the following:

  • changing your address on legal documents;
  • replacing driving licences and non-commercial vehicle permits (not including insurance); and
  • utility hook-ups and disconnections.

Cost to maintain your old residence (maximum of $5,000) when it was vacant after you moved, and during a period when reasonable efforts were made to sell the home. It includes the following:

  • interest;
  • property taxes;
  • insurance premiums; and
  • cost of heating and utilities expenses.

Note – You cannot deduct these costs during a period when the old residence was rented.

Cost of selling your old residence, including advertising, notary or legal fees, real estate commission, and mortgage penalty when the mortgage is paid off before maturity.

Cost of purchasing your new residence if you or your spouse or common-law partner sold your old residence as a result of your move.  This includes legal or notary fees, property transfer tax, and the cost of the title transfer.

Methods of calculation

Detailed Method

If you choose to use the detailed method to calculate your expenses, you must keep all your receipts and claim the actual amount that you spent.

Simplified Method

If you choose to use the simplified method, to calculate your meal expenses, you may claim a daily rate for meals and temporary living expenses, and a per-km rate for vehicle expenses. Although you do not need to keep detailed receipts for actual expenses, the CRA may still ask you to provide some documentation to support your claim.

 

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