Can You Claim Moving and Relocation Expenses for Tax Purposes
Update: January 22, 2019
Many people don’t realize that they can claim some moving related expenses. To do so you must be moving in order to start a job or a business, or to become a full-time student. You must be moving at least 40 km closer to the new workplace or school. Deductions can only be applied on income earned at the new location. Contact Revenue Canada for the special claim form.
If you have moved and established a new home to be employed or run a business at a new location, you can deduct eligible moving expenses from the employment or self-employment income you earned at your new location.
If you moved to take courses as a student in full-time attendance enrolled in a post-secondary program at a university, college or other educational institution, you may qualify to deduct eligible moving expenses from the part of your scholarships, fellowships, bursaries, certain prizes, and research grants that is required to be included in your income.
You must first determine if you qualify to deduct moving expenses, either as an individual who is employed or self-employed or as a full-time student.
If you qualify, you can claim reasonable amounts that you paid for moving yourself, your family, and your household items. Not all members of your household have to travel together or at the same time.
Transportation and storage costs (such as packing, hauling, movers, in-transit storage, and insurance) for household items, including boats and trailers.
Travel expenses, including vehicle expenses, meals, and accommodation, to move you and your household members to your new home. You can choose to claim vehicle and/or meal expenses using the detailed or simplified method.
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. You can choose to claim meal expenses using the detailed or simplified method. If you choose the simplified method, although you do not have to submit detailed receipts for actual expenses, we may still ask you to provide documents showing how long you stayed at the temporary lodging.
Cost of cancelling the lease for your old home, except any rental payment for the period during which you occupied the residence. However, you cannot claim rental payments for any period before the cancellation of your lease, whether or not you occupied the home during this period.
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); and
- 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. It includes the following:
- property taxes;
- insurance premiums; and
- cost of heating and utilities expenses.
For latest updated, please visit Revenue Canada website.