Many people moved away from cities during the pandemic when their jobs went remote. Some of those people may soon be looking to move back closer to their work once the pandemic ends, if they are required to return to the office.
If you find yourself in this situation, you may be eligible to claim moving expenses on your taxes. The Canada Revenue Agency (CRA) allows you to generally be able to claim moving expenses you paid in the year if both of the following apply:
- you moved to work or to run a business, or you moved to study courses as a full-time student enrolled in a post-secondary program at a university, a college, or another educational institution; and
- you moved at least 40 kilometres closer to your new work or school.
What Type of Expenses are Eligible?
- Transportation and storage costs for household items.
- Travel expenses, including vehicle expenses, meals, and accommodation, to move you and your household members to your new home.
- Temporary living expenses for up to a maximum of 15 days for meals and temporary lodging near the old and the new home for you and your household members.
- Cost of cancelling the lease for your old home.
- Incidental costs related to your move which include the following:
- changing your address on legal documents
- replacing driving licences and non-commercial vehicle permits (not including insurance)
- utility hook-ups and disconnections
- Cost to maintain your old home when vacant (maximum of $5,000) after you moved, and during a period when reasonable efforts were made to sell the home.
- Cost of selling your old home, including advertising, notary or legal fees, real estate commission, and mortgage penalty when the mortgage is paid off before maturity.
- Cost of buying the new home if you or your spouse or common-law partner sold your old home because of your move.
What Expenses can you NOT Claim?
On the other hand, you cannot claim any of the following moving expenses:
- Expenses for work done to make your old home more saleable.
- Any loss from the sale of your home.
- Travel expenses for house-hunting trips before you move or for job hunting in another city.
- The value of items movers refused to take, such as plants, frozen food, ammunition, paint, and cleaning products.
- Expenses to clean or repair a rented home to meet the landlord’s standards.
- Expenses to replace personal-use items such as toolsheds, 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.
- Mortgage default insurance.
It’s important to look into each type of claim you may be eligible for and prepare the appropriate back-up documentation that the CRA may ask you for. There are several nuances involved with these types of claims, so please reach out to us at Stonehenge Accounting if you have questions about eligibility and the types of expenses you can claim. Don’t leave money on the table!