Let Revenue Canada finance your move!
Certain moving expenses are deductible when computing your income for the year, depending on your tax bracket you could reduce your bill by up to 50% of your expenses.
YOU ARE ELIGIBLE IF:
- You are moving to a new location to start a job or a business, or attend courses full-time at a post-secondary institution.
- Your new home is at least 40-KM closer to your new place of work or school.
EXPENSES THAT ARE DEDUCTIBLE ARE:
- Traveling expenses include vehicle expenses, meals, and accommodation.
- Transportation and storage of personal effects.
- Cost of cancelling at your previous residence.
- Up to 15 days of meals and accommodation near either residence if your moving dates do not coincide.
- Selling costs of your old residence including real estate commission.
- Legal fees on sale of previous residence and purchase of new residence.
- Mortgage penalty.
- Legal fees and land transfer for purchase of new residence.
- Utilities disconnection/reconnection costs.
- Mortgage interest, insurance, property taxes and utilities associated with old residence while attempting to sell it, to a limit of $5,000 for a maximum of 3-month period.
EXPENSES THAT ARE NOT DEDUCTIBLE ARE:
- Loss on the sale of your previous home.
- Expenses for house-hunting trip before your move.
- Cost of work done on your former residence to make it more saleable.
- Deduction is limited to income earned at new location - can be carried forward to other years.
- Deduction is reduced by any reimbursement received from employer.
THIS IS TO BE USED AS A GUIDE ONLY READERS SHOULD CONSULT A PROFESSIONAL ADVISOR BEFORE ACTING ON THE ABOVE
Beebe Cline - Hugh & McKinnon
14007 16th Ave, White Rock, BC, V4A 1P9
Toll Free: 1-888-419-1909, Cell: 604-531-1909, Fax: 604-531-4624