Can You Claim Tax Deductions for Moving Expenses?

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.