Tax season brings with it a myriad of questions for Canadians, including the potential to claim moving expenses. As life evolves with changes like family expansion or buying a new home, understanding what you can claim on your taxes becomes increasingly important. Moving expenses, often overlooked, can be a significant deduction on your tax return. Stallion Moving & Storage provides insight into who is eligible and what can be claimed according to the Canada Revenue Agency (CRA) guidelines.
Eligibility for Claiming Moving Expenses
The CRA stipulates two main criteria for moving expense eligibility:
Purpose of the Move
1. Your move must be for employment, to start a business, or for full-time post-secondary education.
Distance
2. The new home should be at least 40 kilometers closer to the new job or educational institution than your previous home.
For instance, if you’re relocating to another province for a new job opportunity, you are likely eligible to claim your moving expenses.
What Moving Expenses Can You Claim?
The range of deductible moving expenses varies based on the specifics of your move. It’s important to keep all related receipts and documents. Here are some expenses you might be able to claim:
Transportation and Storage Costs
- This includes professional moving services, in-transit storage, and insurance for your belongings during the move.
Temporary Living Expenses
- Up to 15 days of meals and accommodation while in transit or immediately after the move.
Travel Costs
- Vehicle expenses and meals during the move.
Change of Residence Expenses
- Costs associated with ending a lease, maintaining an old home while vacant, selling or buying a home (legal fees, real estate commissions), and utility connection/disconnection fees.
Personal Documentation Changes
- Costs for updating your driver’s license and vehicle permits.
For Students
- Certain moving expenses can be deducted from income like scholarships or bursaries, provided these are required to be included in your taxable income.
Seek Professional Advice
If you believe your move qualifies for these deductions, consult the Government of Canada’s website or a chartered accountant for accurate advice. Understanding and utilizing these deductions can significantly impact your tax return.
Plan Your Move with Experts
If a future move is on your horizon, reach out to Stallion Moving & Storage. Our team of moving specialists can provide expert services to make your transition smoother and potentially tax-deductible.
FAQ
What are the documents that I need for a CRA moving expense claim?
You’ll need receipts for moving services, storage costs, transportation, and other expenses like temporary housing and meals. Keep all relevant documents for CRA verification.
Are packing services considered deductible moving expenses for CRA?
Yes, packing services are deductible if they are part of your overall moving expenses, helping you transition to your new location.
How do I calculate my moving expense deductions for CRA?
Add up all eligible moving costs, such as transportation, packing, storage, and travel. Then, subtract any reimbursements or allowances you received from your employer.
Can I claim moving expenses when relocating for a job in Canada?
Yes, as long as the new work location is 40 kilometres closer than your old home, and the move is necessary for your employment.
How can Stallion Moving & Storage help with CRA moving deductions?
Stallion Moving & Storage can provide detailed invoices for services like packing, moving, and storage, which you can use when filing your CRA tax return.
