TaxTips.ca
Canadian Tax and
Financial Information
Moving Expenses

Ads keep this website free for you.
TaxTips.ca does not research or endorse any product or service appearing in ads on this site.  Before making a major financial decision you  should consult a qualified professional.

Looking for US tax information?
See
USTaxTips.net

Need an accounting, tax or financial advisor? Look in our Directory.      Stay Connected with TaxTips.ca!      Internet Explorer - Use compatibility view for calculators to work properly!

Home
What's New
Calculators
Personal Tax
Business
Sales Taxes
Free in 30!
Financial Planning
RRSP RRIF TFSA
Real Estate
Stocks Bonds etc.
Seniors
Disabilities
Canada
Alberta
British Columbia
Manitoba
Ontario
Quebec
Saskatchewan
Atlantic Provinces
Territories
Federal Budget
Provincial Budgets
Statistics etc.
Glossary
Site Map
Directory
Advertise With Us
Contact Us/About Us
Links & Resources



Filing Your Return
Income Tax Act s. 62, 248(1)

Line 219 Moving Expenses Deduction

If you moved at least 40km to be closer to a new job, to run a business, or to attend a post-secondary educational institute full time, then you may deduct moving expenses, up to the amount you earn at the new location, or up to the amount of award or scholarship income received in the year.

Normally, for the relocation to be an "eligible relocation", both the old and the new residence must be located in Canada, except in the case of a full-time student.  However, a move between two locations outside of Canada can also be an "eligible relocation" if:

bullet you are a Canadian resident (either factual or deemed) living out of the country, and
bullet you moved from the place where you ordinarily resided, to live in another place where you ordinarily reside.

You may carry excess expenses forward to be offset from income earned at the new location in the next year.  When both spouses have moved and subsequently earn income in the new location, the moving costs can be split between the spouses.

Many costs are deductible as moving expenses, including:

bullet transportation and storage costs for household effects
bullet travel, including vehicle costs and reasonable costs for meals and accommodations in the course of moving the taxpayer and members of the taxpayers household from the old residence to the new residence
bullet costs of canceling a lease for the old residence
bullet real estate commission, advertising, legal and other costs re selling the old residence
bullet legal fees re the purchase of a new home, and any tax, fee or duty (other than GST or value-added tax) imposed on the transfer or registration of title to the new residence
bullet costs re maintaining the old residence, up to a maximum of $5,000, while the old residence is either vacant, or not occupied by any person who ordinarily resided with the taxpayer at the old residence immediately before the move, and while the old residence is not rented by the taxpayer to any other person.  These costs are deductible as long as reasonable efforts are made to sell the old residence
bullet change of address costs, such as replacement of drivers' licenses, non-commercial vehicle permits, and costs of connecting or disconnecting utilities

Note that if any moving costs have been reimbursed by your employer, then the moving costs must be reduced by the amount received, unless the reimbursed amount is included as income elsewhere on your tax return.

Employer-Paid Moving Expenses and Taxable Benefits

If an employer reimburses an employee for moving expenses re a transfer to a new work location, certain of these expense reimbursements will not be considered a taxable benefit to the employee, while some reimbursements will be considered a taxable benefit.  When the employee has an eligible housing loss, only half of the amount exceeding $15,000 is taxable.

If the benefit to the employee is taxable, then CPP contributions and income tax must be deducted.  If the taxable benefit is paid in cash, employment insurance (EI) premiums must be deducted.  Non-cash benefits are not subject to EI.

For more information see Moving Expenses and Relocation Benefits on the Canada Revenue Agency (CRA) website.

Students

See Students - Moving expenses

Canada Revenue Agency Resources

bulletLine 219 - Moving expenses
bullet Form T1-M moving expenses deduction (to be filed with the tax return)
bulletIncome Tax Folio S1-F3-C4 Moving expenses
 

Revised: April 23, 2016

Copyright © 2002 - 2017 Boat Harbour Investments Ltd. All Rights Reserved  See Reproduction of information from TaxTips.ca

Facebook  | Twitter  |  Google + |  Monthly Newsletter Sign-up  What’s New E-mail Notification RSS News Feed
The information on this site is not intended to be a substitute for professional advice.  Each person's situation differs, and a professional advisor can assist you in using the information on this web site to your best advantage. 
Please see our legal disclaimer regarding the use of information on our site, and our Privacy Policy regarding information that may be collected from visitors to our site.