Moving expense deductions
If you have relocated to start a new job or business, or to attend a post-secondary school as a full-time student then you may be eligible to claim the related moving expenses. In order to qualify your new home must be at least 40 kilometers closer to your new workplace or school.
Deductible expenses include cost of packing, transportation, and in transit storage of your household items as well as any associated travel expenses like vehicle usage, meals, and lodging during your trip. Actual costs or per diem deductions are available as legitimate deduction methods.
Temporary living expenses for up to a maximum of 15 days near your new, or former home for meals and lodging are deductible.
The cost of cancelling a lease, and costs to maintain your old residence if it stays vacant once you have moved out are also eligible to a maximum of $5,000.
Incidental costs like change of address on legal forms, replacement of driver’s licenses, utility hook-ups and disconnections can be deducted.
Mortgage penalties, real estate commission, advertising costs, and legal fees from the sale of your old home may be applicable for deduction.
Cost of buying your new home which includes cost of land transfer (not GST/HST taxes), notary and legal fees.
Of course, if any of these expenses were covered by your new employer then they cannot be deducted.
The above information is of a general nature only and should not be relied upon for specific situations. Click here for additional tax accounting services information. Call Marlies Y Hendricks CPA at 416-766-3941 to discuss your best options and set up an appointment.