We know that moving can be a stressful and expensive process, but we have some good news for you. The government wants to help lighten the load (literally and figuratively) with moving expenses deductions. That's right, you can claim expenses such as transportation and storage of your household goods, travel expenses for you and your family, even the cost of canceling your old gym membership (because let's face it, you won't be going there anymore).
Moving expenses must be incurred to be closer to new work place or to run a business. These expenses can be claimed as a tax deduction on the individual's income tax return. In order to claim moving expenses, the individual must have moved at least 40 kilometers closer to the new place of work or business location.
Eligible expenses for moving expenses include:
To claim moving expenses, the individual must fill out Form T1-M - Moving Expenses Deduction and attach it to their income tax return. It is important to keep all receipts and records of expenses incurred during the move, as these will be required to support the claim.As a general rule, CRA requires taxpayers to keep official expense receipts for at least six (6) years. It's important to note that, if you received any reimbursement for moving expenses from your employer, you'll have to reduce the amount of your claim by the amount of the reimbursement. If the reimbursement is more than the expenses, you can’t claim any moving expenses.
Posted on 21 Jan 2023