Moving Tax Deductions Kenwood Moving Storage Montreal| Montreal Movers, storage, household


Maintain the Old Residence
Costs to maintain your old residence when vacant You can claim, to a maximum of $5,000, the cost for interest, property taxes, insurance premiums, and heat and utilities expenses you paid to maintain your old residence when it was vacant after you moved, and during a period when reasonable efforts were made to sell the home. The costs must have been incurred when your old residence was not ordinarily occupied by you or any other person who ordinarily resided with you at the old residence immediately before the move. You cannot deduct these costs during a period when the old residence was rented.
Sale of Residence
When your old residence is sold as a result of your move, eligible moving expenses also include: legal or notarial fees for the purchase of the new residence, as well as any taxes paid (other than GST/HST or property taxes) for the transfer or registration of title to the new residence, if you or your spouse or common-law partner sold the old residence, and the cost of selling your old residence, including advertising, notarial or legal fees, real estate commission, and mortgage penalty when the mortgage is paid off before maturity.

Your Income Tax and Your Move

It may well be that you can deduct some or all of your moving expenses on your personal income tax. The general rule is that you may deduct moving expenses from your income if the following apply:

You move your residence in order to earn salary, wages or self employed income in a new location in Canada or to begin full-time attendance at an educational institution. Your move results in your new residence being at least 40 Kilometers (as the crow flies) closer than your former residence to your new place of work or business, and You cease carrying on business or employment at your former location.

In addition, the following rules apply:

Expenses may be deducted only from income earned at the new location.
No moving expenses that are paid for by your employer, or for which you are reimbursed, may be claimed as a deduction.You may, however, deduct the amount by which eligible expenses exceed amounts paid by your employer or amounts reimbursed.
No moving expense deductions will be allowed for moves into or out of Canada, except for certain students.

Deductions are limited to reasonable amounts actually paid for moving yourself, your family, and household effects. This may include traveling costs, transportation and storage(including items such as boats and trailers), temporary quarters, legal fees, lease termination and the cost of selling your former residence. Moving expenses must be deducted in the year of the move from income at the new location. (If your moving expenses were greater than the income earned at the new location in that year, the difference may be carried forward and deducted from such income in the following year.)

Receipts and documentation of all eligible expenses should be retained. Keep a record of gasoline and oil expenses if you use your own automobile when moving.

Please keep in mind tax laws change regularly. To receive detailed information and the T1-M form which must be filed with your income tax return, contact your nearest district taxation office or visit Revenue Canada's Web Page.