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Is your move tax deductable?

Your entire relocation can be a big expense,always check before you start to see if it is tax deductable.

Rick Taylor · November 30, 2010

Certain relocation expenses are tax deductable. Revenue Canada in most cases allows the deduction from total income relocation expenses you incur when going to a different location for the purpose of starting a new job or going to school. See below to see if you qualify:

*Your new home is at least 40 KMS closer to your new work or school location using the “shortest normal route” to calculate distance.

*The move is from one place in Canada to another place in Canada.

Please keep receipts of your travelling expenses (gas,meals etc),your household move costs (from Taylor Moving),your costs of selling your old home (real estate comissions etc),the cost of purchasing/leasing your new home and any other cost that you gather that relates to your relocation you will be able to calculate a total eligble deduction. This will often times be in the thousands of dollars.

Please remember if you are a relocating employee and your company has given you a lump sum for relocation expenses,you need to include this as income then deduct the moving expenses.

The following are not deductable:

*Any loss on the sale of your home

*Any costs in upgrades (paint,carpet etc) to make your old residence ready for sale.

It is highly suggested before your start your relocation that you check with your accountant or Revenue Canada to learn more.

matt · December 21, 2010

thanks for the information given by this site, can be very useful in clientele explanation and information resource option. thanks for the insights.

Chicago Moving Companies · December 16, 2010

Contemporary federal income tax rates expire Dec. 31 and this will have a big impact on the moving industry. We have tried to study as to how this probable rate cut would create an impact on the Moving Industry, there are different causes for local and interstate moving as a whole. For example, Family, Job, Financial, Climate, Economy, Land prices, Lifestyle, Isolation and so on. Due to the above tax rate cut in 2011, with the same sort of income level, the real income will rise for almost all the income earners. So the job and associated income related moving will be reduced in near future. Though the moving industry is one of the largest GDP generating industries in US, a percentage of business is certainly going to loose as there will be less tendency to move and the economy is trying to stabilize after a long financial tsunami. The moving companies will have to find different tactics to survive in this falling market. It could be discounts or coupons that may take the center stage.

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