Many Canadians are unaware that certain moving expenses are tax deductible when completing their income tax for the year. You are eligible for deductions if you are employed or self-employed or a full-time student, and you are moving to a new location to start or continue a job or business, or to attend full-time courses at a post-secondary institution. Your new residence must be at least 40 kilometres closer to your new place of work or school. As per the Canada Revenue Agency these expenses may include:
- Travelling expenses, including vehicle expenses such as gasoline or moving truck rentals
- Temporary living expenses, including meals and accommodation up to 15 days near either residence if your moving days do not coincide
- Transportation and storage of personal effects
- Cost of cancelling a lease at your previous address
- Mortgage penalties
- Mortgage interest, insurance, property taxes and utilities associated with your old residence while attempting to sell it, to a limit of $5,000 for up to 3 months.
- Costs of selling your previous residence including real estate commission
- Legal fees on the sale of your previous residence and the purchase of your new residence
- Utility disconnection and connections fees
For more information please go to www.cra.gc.ca or call 1-800-959-8281. If you’re moving in the Halton Hills or Georgetown area, contact us today and ask about our free estimates.