April 23, 2019

The ins and outs of claiming moving expenses on your tax return

Under the Income Tax Act, you can write off moving expenses provided you’re moving for work, to run a business or to be a full-time student. Moving expenses can include ancillary costs like the cost of cancelling the lease for your previous home and utility hook-ups and disconnections. Costs associated with selling your old home, like notary or legal fees are also tax deductible. However, take care of what you claim, because expenses “must pertain directly to a move and cannot be incidental expenses.”

Key Takeaways:

  • For your moving expenses to qualify, your new home must be at least 40 kilometres closer to your new work or school.
  • Moving-related meal and vehicle expenses can be deducted in detail or simplified formats.
  • The costs on your vacant old home, such as mortgage interest, property taxes, home insurance premiums and the cost of heating and utilities, can be deducted up to a maximum of $5,000 – provided you make reasonable efforts to sell it.

“If you moved at some point this year, you may be entitled to a tax break for your moving expenses come tax time. But be careful, because not all expenses associated with your move may be tax deductible.”

Read more: https://business.financialpost.com/personal-finance/taxes/the-ins-and-outs-of-claiming-moving-expenses-on-your-tax-return

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