Let Revenue Canada Finance Your Move
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
- 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
- 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.