When can you deduct your moving expenses on your income tax return?
Your moving expenses may be tax deductible if you meet the following two conditions:
- You moved in order to hold a job, practice a profession, operate a business, or attend an educational institution where you were enrolled full-time in a post-secondary program;
- You moved at least 40 kilometres closer to your place of study or new place of work.
Deductible expenses include most of the usual moving expenses, such as:
- truck or trailer rental;
- the cost of transporting and storing your belongings;
- travel expenses (accommodation, meals, vehicle) to get to your new place of residence;
- the cost of maintaining your former vacant home (maximum $5,000) after you move and during a period in which serious efforts have been made to sell it;
expenses related to the sale of your home (advertising, commission paid to the real estate broker);
- the cancellation of your lease;
- costs related to the purchase of your new home, provided the old residence has been sold (legal fees, commission paid to a real estate broker, transfer duties);
- costs to update your legal documents (wills, mandates).
Keep in mind:
Even students who move for summer employment are eligible. Note that only expenses related to a move within Canada are deductible.
Do you have questions?
Contact us at 1 844 200-TAXO (8296), a member of our team will be happy to assist you. As you know, our service is available year-round; you can deposit your receipts at any time in your Customer Center at taxo.ca.