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Moving Expenses Deduction
To be eligible for moving expenses deduction an individual must have moved over 40 KM closer to their work, this applies to both employed and self employed individuals. Individuals must also be residents of Canada, either factual or deemed, and the move must have been from a place you resided to a new place where now reside.
When claiming the moving expenses deduction, eligible expenses can only be deducted against employment or self-employment income earned at the new location. In cases where not enough income has been earned to cover expenses, (an example would be moving in December and earning much at the new place of work for the tax year), the cost can be carried forward and a deduction made in following years.
Employment income or self-employment income are the only sources of income that moving expenses can be deducted from. If you have other sources of income such as interest or dividends from investments, they can not be used towards the deduction calculation.
You are able to use the moving expenses deduction for reasonable amounts to:
Qualified Moving Expenses include:
- moving you
- moving your family
- household belongings
**Vehicle and meals can be claimed using the actual costs (called the detailed method) where you will tally up total cost incurred, deduct that amount and submit the receipts. You also have the option of using the simplified method, where you may claim a flat rate of $17 per meal to a maximum of $51 per day per person, without receipts (2009 rates). Vehicle expense are much the same, using the detailed method you must track expenses and kilometers related to the move, and submit all receipts with your claim. The simplified method allows you make claim based on the kilometers used in the move and multiplying that the Cent / KM rate below using the province or territory where the trip began.
- transportation and storage costs
- up to 15 days of temporary residence cost
- lease cancellation costs
If you are selling a home to relocate, additional eligible moving expenses are
If you were unable to sell the old home before the move you can claim up to $5,000 in servicing costs (interest, taxes, insurance, heat and utilities) when the house was vacant and efforts to sell where made.
- legal fees and title transfer costs related to the purchase of a new home
- legal fees, commissions, mortgage penalties, any other cost related to selling the old home
You can also deduct costs for changing names on legal documents, replacement of drivers licenses, and utility hookups and disconnections.
Student Moving Expenses:
Student can also claim moving expenses, only if they move to study Full Time at a post-secondary institution, and the move is more than 40 KM closer the the school. Student moving expense can only be deducted from scholarships, fellowships, bursaries, certain prizes, and research grants amounts included in income. Moving expenses exceeding the amount of scholarships, fellowships, bursaries, certain prizes, and research grants included in income can carry them forward and deduct against similar income in future years.
Please click here if you want to leave the Moving Expenses Deductions page and return to the Common Overlooked Tax Deduction and Credits page
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