LET REVENUE CANADA FINANCE YOUR MOVE
Certain moving expenses are deductible when computing your income for the year, depending on your tax bracket you could reduce your tax bill by up to 50% of your expenses.
YOU ARE ELIGIBLE IF:
You are moving to a new location to start a job or a business, or attend courses full-time at a post-secondary institution.
Your new home is a least 40-KM closer to your new place of work or school.
EXPENSES THAT ARE DEDUCTIBLE ARE:
Travelling expenses including vehicle expenses, meals and accommodation
Transportation and storage of personal effects
Cost of canceling a lease at you previous residence
Up to 15 days of meals and accommodation near either residence if your moving dates do not coincide
Selling costs of your old residence including real estate commission
Legal fees on sale of previous residence and purchase of new residence
Mortgage penalty
Advertising
Legal fees and land transfer tax for purchase of new residence
Utilities disconnection/reconnection costs
Mortgage interest, insurance, property taxes and utilities associated with old residence while attempting to sell it, to a limit of $5,000 for maximum 3 month period
EXPENSES THAT ARE NOT DEDUCTIBLE ARE:
Loss on the sale of your previous home
Expenses for house-hunting trips (HHT) before your move
Cost of work done to your former residence to make it more saleable
OTHER COMMENTS:
Deduction is limited to income earned at new location - can be carried forward to other years
Deduction is reduced by any reimbursement received from employer.
THIS IS TO BE USED AS A GUIDE ONLY. READERS SHOULD CONSULT A PROFESSIONAL ADVISOR BEFORE ACTING ON THE ABOVE.
Presented By:
Dennis Philps
RE/MAX Real Estate Associate
(780) 993-2290 (24 hrs.)
(877) 462-7878 (toll free)
(780) 463-0188 (fax)
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