We understand all the logistics of moving; the entire thought of packing up your life and moving to a completely new place can be daunting and expensive. Have you moved from one home to another in the past year – more than 40 km? You may be eligible to deduct your moving expenses on your next yearly tax return. c Wouldn’t it be nice to see what you can deduct from your next income tax return? We are here to tell you all about it. In this blog post we will share helpful tips and links that will give you everything you need to deduct moving expenses.
If you are moving for a new job, to start a new business or to go to school full time you are fully eligible to deduct payments you would have had to pay for yourself.
During your move KEEP YOUR RECIEPTS!
- Did you hire movers, a trailer, van, U-Haul?
- Did you buy any packing supplies? (boxes, tape, paper)
- If you moved or are moving larger possessions such as trailers, boats, motorcycles – you can also deducts the cost of transporting these items.
- All receipts from your vehicle can be deducted, including ownership, fuel, oil changes, tires, any maintenance or repairs
- Keep a record of how many kilometers travelled, from beginning to end or from a time period
- If you drive 20,000 km in 1 year and 5,000 km were moving related, 25% of your vehicle expenses can be tax deductable.
Moving makes you hungry. Yes, you can deduct any meal’s you buy during your move. Anytime you buy food, keep your receipts.
Origin Residence Maintenance Expenses
- Did your old home sit on the market vacant for a period of time? If so, you are eligible to deduct $5,000 maximum
- You are also eligible to deduct interest, property tax, insurance and heat/utility costs. No tax deductions can be made for any home upgrades
Origin Residence Fees
Once your origin residence is sold, you may come across paying for legal fees, purchasing the destination home, costs of selling the origin residence (advertising, legal fees and/or real estate fees), home sale loss or any house hunting trips you take before you move.
It is also important to find out if your employer will be paying for your relocation expenses. If that is the case, you are unable to claim that portion on your tax return. We hope this blog post assists you are you are filling out your tax return this year. If you have any questions about our relocation services please contact us.
Canada Revenue Agency - MOVING
Canada Revenue Agency - MOVING EXPENSES
ATLAS Van Lines - TAX FORM PDF
Canada Revenue Agency - MOVING EXPENSES DEDUCTIONS