Employment or Self Employment
Did you know Your Moving Expenses May Be Tax Deductible? Your moving expenses are tax deductible if you move and establish a new home to be employed or carry on a business, you can deduct eligible moving expenses from employment or self-employment income that you earn at the new location.
Full Time Student
If you are a full time student and moved to attend a college, university, or other educational institution in a program at a post-secondary school level (whether in Canada or not); and during a particular semester, you are taking at least 60% of the usual course load for the program in which you are enrolled.
In both cases it must be a place you ordinarily reside and your new home must be at least 40 kilometres (by the shortest usual public route) closer to the new work location or educational institution.
What Moving Expenses ARE Covered?
Eligible Moving Expenses
• 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, we may still ask you to provide some documentation to establish the duration of the temporary lodging.
• Transportation and storage costs (such as packing, hauling, moving, 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.
• 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 includes the following:
• changing your address on legal documents;
• replacing driving licences and non-commercial vehicle permits (not including insurance)
• 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:
• property taxes;
• insurance premiums; and
• heat and utilities expenses.
Note: Costs must have been incurred when your old residence was not ordinarily occupied by you or any other person who ordinarily resided with you at the old residence just before the move. 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.
Note: Includes legal or notary fees that you paid for the purchase of your new residence, as well as any taxes paid (other than GST/HST or property taxes) for the transfer or registration of title to the new residence.
What Moving Expenses ARE NOT Covered?
Non-Eligible Moving Expenses
• Travel expenses for work done to make your old residence more saleable;
• Any loss from the sale of your home;
• Travel expenses for house-hunting trips before you move;
• Travel expenses for job hunting in another city;
• The value of items movers refused to take, such as plants, frozen food, ammunition, paint, and cleaning products;
• Expenses to clean or repair a rented residence to meet the landlord’s standards;
• Expenses to replace personal-use items such as toolsheds, firewood, drapes, and carpets;
• Mail-forwarding costs (such as with Canada Post);
• Costs of transformers or adaptors for household appliances;
• Costs incurred in the sale of your old residence if you delayed selling for investment purposes or until the real estate market improved
• Mortgage default insurance.
Should you be moving and need to sell your home and purchase a new home, CompareMyRates.ca has the Best Rates in Canada so whether you are moving to another city or another province, you can get the best rates in any city or province in Canada.
Moving can be stressful, so why not get connected to a professional. At CompareMyRates.ca you can connect to our Mortgage Brokers by completing the Quote form or simply find a Mortgage Broker in your area with our Mortgage Broker Search.
Find Out More Information go to the Canada Agency Website and find out about Moving Expense Deduction by clicking here.