Tax Deductible Moving Expenses

March 25, 2010 · Filed Under First Time Buyers and St. John's Relocation · Comments Off 

There are a number of people who transfer jobs and relocate to and from Newfoundland and never realize  that there are tax benefits involved with moving expenses.

If you are preparing to move, it’s best to be informed, so below I have included a quick summary of tax deductible moving expenses provided from the Canada Revenue Agencies website.

Eligible moving expenses include:

  • transportation and storage costs (such as packing, hauling, in-transit storage, and insurance) for household effects, including items such as boats and trailers; traveling expenses, including vehicle expenses, meals, and accommodation, to move you and members of your household to your new residence
  • costs for up to 15 days for meals and temporary accommodation near either residence for you and the members of your household
  • the cost of canceling a lease for your old residence, except any rental payment for the period during which you occupied the residence.

When your old residence is sold as a result of your move, eligible moving expenses also include:

  • legal or notarial fees for the purchase of the new residence, as well as any taxes paid (other than GST/HST or property taxes) for the transfer or registration of title to the new residence, if you or your spouse or common-law partner sold the old residence
  • the cost of selling your old residence, including advertising, notarial or legal fees, real estate  commission, and mortgage penalty when the mortgage is paid off before maturity.

Moving expenses that you cannot deduct include:

  • expenses for work done to make your home more sale-able
  • any loss from the sale of your home
  • the value of items movers refused to take, such as plants
  • frozen food, ammunition, paint, and cleaning products
  • expenses for job hunting in another city (such as traveling expenses)
  • expenses to clean or repair a rented residence to meet the landlord’s standards;
  • expenses to replace personal-use items such as tool sheds, firewood, drapes, and carpets
  • mail-forwarding costs (such as with Canada Post);
  • costs of transformers or adaptors for household appliances;
  • costs incurred in the sale of your old home if you delayed selling for investment purposes or until the real estate market improved
  • costs for vehicle inspections and/or emissions tests

Be sure to check out Canada Revenues website for updated information, and speak with your accountant.