Did you know that the
CRA could allow you to have your moving expenses deducted from your
taxes as long as you meet certain criteria? In general, the agency
allows deductions if you move to another location for a new job or to
start a business, provided that your new home is at least 40
kilometers near your workplace or business establishment. Read on if
you want to know which of your expenses can be credited in this
deduction.
Eligible Expenses
Essentially, you can
have your travelling expenses including shipping, transportation,
food, and temporary accommodations within 15 days after your move
deducted. If you were renting, the cost of ending your lease, as well
as other legal fees and land transfer fees can be deducted as well.
Employer Expenses
You can’t deduct the
moving expenses that your employer has paid for you. In case he only
paid a portion of your moving fees, the eligible expenses that you
paid for can be deductible from your income at the new location.
Student Expenses
The CRA also allows
deductions for students who are moving for the purpose of getting a
job (even if it’s just a summer job) or to start a business.
Students who move to attend full-time post-secondary schools could
have their expenses deducted only insofar as the extent of their
research or scholarship grant income.
