Let Revenue Canada Finance Your Move

Mar 2, 2018 | Buyers | 0 comments

The following information is taken from Fraipont & Manyk Team’s website.

Certain moving expenses are deductible when computing your income for the year, depending on your tax bracket you could reduce your tax bill by up to 50% of your expenses.

You are eligible if:

  • You are moving to a new location to start a job or a business, or attend courses full-time at a post-secondary institution.
  • Your new home is a least 40-KM closer to your new place of work or school.

Expenses that are deductible

  • Travelling expenses including vehicle expenses, meals and accommodation
  • Transportation and storage of personal effects
  • Cost of canceling a lease at you previous residence
  • Up to 15 days of meals and accommodation near either residence if your moving dates do not coincide
  • Selling costs of your old residence including real estate commission
  • Legal fees on sale of previous residence and purchase of new residence
  • Mortgage penalty
  • Advertising
  • Legal fees and land transfer tax for purchase of new residence
  • Utilities disconnection/reconnection costs
  • Mortgage interest, insurance, property taxes and utilities associated with old residence while attempting to sell it, to a limit of $5,000 for maximum 3 month period.

Expenses that are NOT deductible

  • Loss on the sale of your previous home
  • Expenses for house-hunting trips (HHT) before your move
  • Cost of work done to your former residence to make it more saleable

Other Comments

  • Deduction is limited to income earned at new location – can be carried forward to other years
  • Deduction is reduced by any reimbursement received from employer.

 

THIS IS TO BE USED AS A GUIDE ONLY. READERS SHOULD CONSULT A PROFESSIONAL ADVISOR BEFORE ACTING ON THE ABOVE.

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