Are Your Moving Expenses Tax Deductible?
Find out which moving expenses are tax deductible and which conditions you need to satisfy.
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If you’re moving in Toronto or elsewhere, you might not be aware that your moving expenses may be tax deductible. That’s right – according to the Canada Revenue Agency, you can claim moving expenses on your taxes, but only if they’re eligible. To be eligible, you’ll need to satisfy a few conditions. But don’t worry, there’s nothing complex to figuring out which expenses are deductible and which aren’t.
Can you claim moving expenses on your taxes?
For starters, in order to claim expenses, you must be moving for work or school. Those are broad categories which include moving to work at a new job, running a business at a new location, or starting full-time coursework at a university. In addition, your new home has to be at least 40 kilometers closer to your new workplace or school than your previous home was.
Moving for work
Even if you’re self-employed, you can get this deduction. Keep in mind that if you’re an employee who received moving expense reimbursement from your employer, you’ll have to disclose that on your tax forms. For more information, visit the relevant section on the CRA website.
Moving for school
You’re eligible for a tax deduction for moving expenses if you’re relocating to start attending a university, college, or other post-secondary schools full-time. This applies even if you are moving outside of Canada, as a Canadian citizen. The main stipulation here is that you must be establishing a new place of primary residence – that means you’ve sold or stopped renting your current home in order to live in your new home. If you’re keeping your current residence while moving to your new home temporarily, you won’t be able to deduct moving expenses from your taxes.
Which moving expenses can you deduct?
Eligible moving expenses include the following:
- Transportation costs including moving, hauling, packing, and insurance
- Storage costs for household items as well as boats and trailers
- Travel costs for yourself and your family members, including meals, accommodation, and vehicle expenses
- Temporary living costs for up to 15 days at hotels or other types of temporary lodging
- Cost of canceling your old lease, if applicable
- Costs for paperwork such as changing your driver’s license or other legal documents
- Costs for selling your old home, such as advertising, legal fees, and commissions
- Costs for purchasing your new home, such as taxes, notary fees, and title transfer
More details and explanations
For more details about eligibility, eligible expenses, and methods of calculation, see the Line 219 section of the CRA website. If you have any questions or need assistance, don’t hesitate to call Phillips Moving and Storage – your local Toronto movers with a century of experience.