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Tax-Deductible Moving Expenses SHAH AHMED - REMAX SASKATOON.
Tax-Deductible Moving Expenses
Small PicHave you recently moved to a new location? Do you know that you can deduct certain moving expenses on your next tax return, including transportation, packing and storage costs.

Many people never realize these tax benefits because they don't know what can be deducted. If you are preparing to move, it's best to be informed beforehand so you know which receipts to keep. You may find it worthwhile during a move to pay for various services that are tax-deductible rather than doing them yourself. A typical move involves a number of costs including hiring a company to transport personal effects and furniture, hotel stays and meals (if the move involves driving a long distance to a new home), and service fees to disconnect and reconnect utilities. In addition, renters who leave on short notice may have to pay the cost of breaking a lease.

Homeowners will incur closing costs and commissions on the sale of their home as well as legal and other fees on the purchase of their new home. This article provides information regarding tax deductible moving expenses.

To claim moving expenses on your taxes, your move has to meet the following conditions:

  • You moved to your new home or new apartment to start a job or a business, or to attend full-time post-secondary courses at a university, college or other educational institution
  • Your new place of residence is at least 40 km closer to your workplace or school than your previous home.
  • You moved from one place in Canada to another place in Canada.

Two groups are eligible to deduct a portion of their moving expenses: students moving away from home to attend school and people moving to a new area for a job or relocation by their employer. There has been a challenge to the rules regarding eligibility for the self-employed as you'll read later in this article.


Students must fulfill two main qualifications: the distance between your home and school must be at least 40 km (by the shortest public route) and you must be a full-time student. A full-time student is defined as someone who regularly attends a college, university, or other educational institution in a program at a post-secondary school level (whether in Canada or not) and is taking at least 60% of the usual course load during each semester.

As a student, you can only deduct eligible moving expenses from award income (scholarships, fellowships, bursaries, prizes, and research grants) that you report on your return. Your moving expenses must be greater than your award in order to deduct any moving expenses. As Revenue Canada's website reads, "If your moving expenses are more than the award income you report for the year, you can deduct the unused portion of those expenses from the award."

Although many students will not earn award income and will therefore not be able to deduct moving expenses, tuition fees themselves are a tax deduction. If a student has a part-time job, tuition can reduce taxes paid on those earnings. Students who meet the qualifications and have received award income can deduct the costs of travel, shipping and transportation of belongings, as well as items listed below under 'Expenses you can deduct'.


If you are moving for work (e.g. a company relocation or new job), are employed and establish a home at least 40 km closer to a new job than your old home, then you qualify to deduct moving expenses. Similarly, if you are self-employed, and you establish a home at least 40 km closer to your new operational business than your old home, you also qualify to deduct moving expenses.

According to Revenue Canada, you must establish your new home as the place where you and members of your household ordinarily reside. For example, you have established a new home if you have sold or rented (or advertised for sale or rent) your old home.

Employed and Working from Home: an Exception to the Rule

Until recently, employees who work from home and move have faced some restrictions regarding moving expenses. In the court decision Gary Adamson v. the Queen, Mr. Adamson had incurred moving expenses as an employee who was required to provide his own office in his home.

Expenses you can Deduct:

  1. transportation and storage costs (such as packing, hauling, in-transit storage, and insurance) for household effects, including items such as boats and trailers;
  2. traveling expenses, including vehicle expenses, meals, and accommodation, to move you and members of your household to your new residence (you can choose to claim vehicle and meal expenses using the simplified method);
  3. costs for up to 15 days for meals and temporary accommodation near either residence for you and the members of your household (you can choose to claim meal expenses using the simplified method); and
  4. 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 notaries 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, and
  • 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.

Expenses that are not Deductible:

  • expenses for work done to make your home more saleable;
  • any loss from the sale of your home;
  • expenses for house-hunting trips before you move;
  • 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; and
  • costs incurred in the sale of your old home if you delayed selling for investment purposes or until the real estate market improved.

Remember to keep receipts and documents supporting your claims, you do not have to include these documents in you tax claim but Canada Revenue Agency may want to see them at a later date.

Keep in mind that this article is for information only. The tax laws are frequently modified. We recommend that you visit the Canada Revenue Agency's website for specific details about which moving expenses you can claim or consult a professional accountant to maximize your tax return.

Posted: Thursday, March 25, 2010 8:25 PM by Shah Ahmed


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# May 18, 2013 3:31 AM

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Mourinho likes to get a deep middle assault in front, can certainly offer the golf ball, along with the use of atmosphere superiority, affect the other blowout series. With this in mind, My spouse and i Lukaku will be anticipated to go back through Thib Bromwich, they have an exceptional period now there (at the time of the weekend, Lukaku Sibrand scored 14 Top Little league goals, over Chelsea's alternative online players from the Little league), over some time, Lukaku has the name a brand new Drogba, [url=http://kitssale.webs.com/]football kits[/url] Mourinho regression, may perhaps permit the little warcraft working in london shine. My spouse and i in addition believe, Mourinho is going to be searching for the remain intended for Chelsea midfielder Claude Makelele, form. From the season that this Chelsea workforce, Makelele is a exclusive supplies, yet considering that Essien still left, you might say that will Chelsea desired the killer in such a location. Also, Mourinho is usually just about guaranteed to yes Lampard a brand new contract, if Chelsea had not done along with Lampard's contract. Lampard along with Mourinho were excellent marriage, Chelsea ended up being through summit interval, they have got formed a terrific workforce match up, intended for a great number of decades, the info connected with Lampard to the Chelsea will be matchless, if cane easily see inside Lampard previous to heading off, using the services of Mourinho once again, that will become an excellent idea. Should you observe Chelsea from the lineup, such as those of the on-loan online players such as Lukaku, for example, you will discover out there, Chelsea hand reference will be therefore considerable. [url=http://kitssale.webs.com/]cheap soccer shirts[/url] They have got an excellent goalkeeper on personal loan during Atletico The town (Courtois), We were shared with that will they is probably the most effective goalkeepers inside The eu, along with from the Chelsea goalkeeper location, Cech along with Turnbull are very excellent. Chelsea in addition along with Jesse Lewis, that appears like they are getting better along with much better. During the past, shielding faults, they ended up being falsely accused connected with not necessarily fewer, nevertheless it appears like that yet permit your pet fully developed. Jesse Lewis in addition scored many fantastic globe influx along with crucial purpose, because they recently designed against Fulham, along with at your house against Basel. The Blues include three extremely strong attacking midfielder, Mata, Oscar along with Zal, yet more importantly, inside 07 Mourinho still left the Standford bridge, key continues to be the workforce they still left, both equally on along with over discipline, Lampard, Terry along with Ashley -- Cole continues to be the team's influential results, along with Cole along with The united kingdom, a couple of from the most effective still left again connected with. Along with Everton, such as Bynes, Cole is usually extremely aggressive, inside his found say, a minimum of can certainly play for two decades on the leading. If Mourinho strolled to the Standford bridge door, he will observe many well known amiable skin, this also is going to be his reconstruction of a brand-new period connected with Chelsea.

# May 18, 2013 9:09 AM

Jourcegreency said:

Alan Hiller's column: Mourinho come back to this Barclays Premier Little league, Chelsea is just not wanted, but also desires this premier little league. I know some United admirers may have diverse vistas, but it can be way too typical. Have to declare, today competitive rivalry with the major three bicycle seats, definitely not with this cycle we have been throughout year can be supposed to find (Hiller looks at this expectation to see this championship until finally the finale), and the various other a single other suspense can be, who will be lastly within the Premier Little league team relegated team. I really believe, the subsequent year at the moment, other sellers will be more rigorous, [url=http://2013soccerjerseys.bravesites.com/]Cheap Soccer jerseys[/url] Mourinho could be the main aspects. In the event he earnings this Standford conduit, Chelsea can quickly be concept contenders, simply because they can just as before have the international among the best. Chelsea quit for 6 months time years, to demonstrate Mourinho's job, within the inter receive about three crown, throughout Authentic The country practical experience When i do not think that is a failing, he acquired vanquished this mighty Barcelona micro-blog, micro-blog winning La Liga winners very last year, could also receive subsequent nobleman glass trophies this coming year. Authentic Madrid's cuts, are going to be Chelsea's gain, Mourinho can just as before create this blues with the Premier Little league concept. Standford conduit includes a very good team, have a 2 or three health supplement, they'll grow to be high-profile electricity for a second time. Mourinho as well back to this Premier Little league, can be a single probably the most people "soap opera", this person may be a box-office make sure, will not refuse this, every one of us adore to perceive him talk, regardless of whether most of us realize what exactly he said. When he will go, may bring this question, he spoke of, can be overbearing. Can be anticipated, this Premier Little league future year are going to be extremely desirable. Ferguson appearance more likely to continue to strengthen United's squad, The city of manchester soon after very last summer's slip-up, absolutely within the exchange market place on a large, When i be expecting the modern support major they'll hint three or four, a new afraid force for a second time. If Arsenal can buy a single, it might have been improved, possibly this Spurs could also have a declare within the concept battle, whenever they might maintain Baer, and also 2 or three major signings. This premier is really wanted, can be for a second time this heavyweight championship, and also Mourinho's gain, we could as a minimum find about three competitors engaged.

# May 18, 2013 9:19 AM
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