Could your moving expenses be tax deductible?

Here is a point that could put a few dollars in your pocket!

In today’s world, it is increasingly common for an individual to have to move several kilometers in order to be closer to their place of work. The time spent in the car driving, the logistical difficulties of taking the children to school, the additional expenses related to gas and wear and tear on the car, etc. For practical reasons, this person will probably consider selling their house to be closer to their new workplace. Good news may be waiting for it… Few know it, many forget it, but it is generally possible to deduct all moving expenses, including broker’s compensation, truck rental, hiring movers, and more. others, which you paid during the year! That’s not all. Not only are these deductions deductible for people getting closer to a new job, but they are also deductible for people who move away for school.

Generally, you can claim moving expenses you paid in the year if both of the following apply:

• you moved to work or to run a business at a new location, or you moved to study courses as a full-time student enrolled in a post-secondary program at a university, a college, or other educational institution
• your new home must be at least 40 kilometres closer (by the shortest public route) to your new work location or school

Eligible moving expenses

Transportation and storage costs (such as packing, hauling, movers, in-transit storage, and insurance) for household items, including boats and trailers.

Travel expenses, including vehicle expenses, meals, and accommodation, to move you and your household members to your new home. You can choose to claim vehicle and meal expenses using the detailed or simplified method.

Temporary living expenses for a maximum of 15 days for meals and temporary lodging near the old and the new home for you and your household members. You can choose to claim meal expenses using the detailed or simplified method. If you choose to use the simplified method, the CRA may still ask you to provide documents showing how long you stayed at the temporary lodging.

Cost of cancelling your lease for your old home, except any rental payments before the cancellation of your lease.

Incidental costs related to your move which include 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 home when vacant (maximum of $5,000) after you moved, and during a period when reasonable efforts were made to sell the home. It includes the following:

Interests

Property taxes

Insurrance premiums

Cost of heating and other utilities expenses

You cannot claim these costs during a period when the old home was rented. The costs must have been incurred when your old home was not occupied by you or any other person who resided with you at the old home just before the move.

Cost of selling your old home includes the following:

Advertising (including Realtors’ fees)

Notary or legal fees

Real estate commission

Mortgage penalty when the mortgage is paid off before maturity

Cost of buying the new home if you or your spouse or common-law partner sold your old home because of your move.

Source: CRA( Canada Revenu Agency)

 

---

 

You have more questions regarding a long distance move?

Call your trusted Real Estate brokers!

Felix Villeneuve & Pauline Chen

Or click the following link to see our current inventory

Houses currently available

Pauline Chen and Felix Villeneuve are a accredited by BGRS (Brooksfield Global Relocation Services, canadian service division) as a Third-Party Service Provider Program Realtor®/Broker, which include services to:

TBS (The Treasury Board Secretariat of Canada)

RCMP(Royal Mounted Canadian Police)

RCMPVA (Royal Canadian Mounted Police Veterans Association

CAF (Canadian Armed Forces)

---

Chen-Villeneuve | Royal LePage Real Estate Brokers | Montreal | South Shore

7503 Taschereau Boulevard
Brossard, QC, J4Y 1A2
Phone : (514) 887-9081 or (514) 295-0228
Toll free: (833) 215-0228

Pauline Chen, Google Profile : Click Here!
Felix Villeneuve, Google Profile : Click Here!
Chen-Villeneuve Team, Google Profile : Click Here!