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Deductible Moving Expenses in Canada

When you are moving within Canada, there are moving expenses that you could be eligible for deducting on your next tax return. Many people are not aware of this but there are costs such as transportation, packing, and storage fees that you may be able to claim on your Canadian Federal income taxes. In this article you can learn about what expenses can be deducted and whether or not you are eligible for these tax returns.

Standard moves include costs for hiring a moving company to move your belongings, hotel stays and meals for long distance moves, service fees to disconnect/ re-connect home utilities, and even fees such as the cost for breaking a lease on short-term notice. Additional costs such as closing costs and commissions on the sale of a home, legal fees for homeowners, etc. may be accounted for as well.

Two groups of people may be entitled to deduct some of these moving costs; students and employees moving for the purpose of school or job relocation.
To be eligible to claim any of your moving expenses on your next tax return, you must meet the below circumstances:
· You moved from one place to another (within Canada)
· You moved to your new home for school or work; to attend a full-time basis educational institute or start a job or business
· Your new home must be at least 40 km closer to your school or workplace than your previous home
Students:
If you are a full-time student and meet all the criteria above, then you can be entitled for deducting moving expenses from your award income such as scholarships, bursaries, grants, etc. Your moving expenses have to be greater than your award income in order to deduct them from your tax return. If you are a student and did not receive any award income, then you can deduct your tuition fees from your tax return.
Employees:
If you are moving for work; either relocation of a job or new job, then you can qualify to deduct your moving expenses.
Expenses you can deduct:
· Moving transportation costs for your household goods
· Storage fees
· Travelling expenses such as vehicle costs, meals and accommodation costs for up to 15 days
· Any cancellation fees for terminating a lease, if short term notice was given and if any fee applies
· Any legal fees for the purchase of your new home
· Any legal fees for the costs of selling your home; real estate commissions, advertisement fees, lawyer fees, etc.

*Be sure to remember to keep all records and receipts of all moving costs and expenses to support all your claims.
For more information follow the link to the Canada Revenue Agency’s website for further details and instructions for claiming moving expenses on your next tax return:

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posted by Flexible Move @ Friday, June 17, 2011 3:45 PM   2 Comments


2 Comments:
At September 3, 2013 at 9:40 AM ,Anonymous John @ removalsleicester said...

This is great advice, probably a great relief to most as moving house can soon rack up a lot of costs.

  At November 29, 2013 at 2:41 AM ,Blogger Thomas Maloney said...

I really appreciate you posting this as I am sure most people aren’t even aware that tax breaks are available. My daughter is a student in Brisbane and I think would fall under that category, I will have to tell her to check it out and hopefully she’ll save some money as students never have a lot of spare cash do they?

 

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