Moving Expenses and Taxation in Canada

By Quality Move Management Inc / September 16, 2019

Let’s understand how Canadians can claim moving expenses when they move their primary residence. Not everyone is eligible, as there are criteria to be met and only certain types of expenses that can be deducted. 

 

Are You Eligible to Claim Your Moving Expenses? 

Any individual who has moved and established a new home to be employed or run a business at a new location is entitled to deduct eligible moving expenses. This covers individuals who have moved within Canada, from outside Canada to a new work location in Canada, from Canada to a new work location outside Canada and certain individuals who moved between two locations outside of Canada. The new home you establish must be 40 kilometres closer to your new place of work than the prior location. Full-time students may also qualify to deduct eligible moving expenses from part of their scholarship, fellowships, bursaries, certain prizes and research grants that are required to be included in their income. 

If you move from Canada, to Canada, or between two locations outside Canada, you must be a deemed or factual resident of Canada and the move has to be from one place where you ordinarily resided to live in another place where you will ordinarily reside.


 

What Types of Expenses You Can Claim? 

You can claim reasonable amounts that you paid for moving yourself, your family and your household items. Transportation and storage costs such as packing, hauling, movers, in-transit storage and insurance for household items, including boats and trailers, can be deducted. 

You can also claim 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), including meals and accommodations for you and your family, can be deducted. Costs of cancelling a lease of your old residence and costs to maintain your old residence (maximum of $5,000) when it was vacant after you moved are also eligible.

Incidental costs such as changing your address, replacing your driving licences and utility hook-ups and disconnections are eligible. 

 

How Do You Claim the Expenses On Your Tax Return?

To claim moving expenses, complete form T1-M, “Moving Expenses Deduction.” On this form you report where you moved from and to, why you moved, and the specific details and dollar amounts of your moving costs.  

You’re not required to file either the T1-M or any moving receipts with your tax return. However, you are required to keep these on hand in case of a CRA query. These queries happen so make sure you are organized and ready to support your claim.

 

Source – Canada Revenue Agency 

Forms - Form T1-M, Moving Expenses Deduction

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