Vancouver Moving Tips: Save on Your Taxes by Claiming Your Moving Expense
Moving in Vancouver can be one of the most stressful tasks a person can be faced with. If you’re anticipating relocation and feeling the heat, then here’s a little incentive – you can claim your moving expenses and could be eligible for some sizeable savings.
According to Canada Revenue Agency:
“You can deduct eligible moving expenses if you move and establish a new home to be employed or carry on a business at a new location, or if you move to study courses as a student in full-time attendance at a university, college or other educational institution that offers courses at a post-secondary school level.
To qualify, your new home must be at least 40 kilometres (by the shortest usual public route) closer to the new place of work or educational institution.”
Eligible Moving Expenses Includes:
- Transportation and storage costs
- Travel expenses, including vehicle expenses, meals, and accommodation
- Temporary living expenses for up to a maximum of 15 days
- Cost of cancelling a lease for your old residence,
- Incidental costs related to your move which includes 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 residence (maximum of $5,000)
- property taxes;
- insurance premiums; and
- heat and utilities expenses.
- Cost of selling your old residence, including advertising, notary or legal fees, real estate commission, and mortgage penalty
- Cost of purchasing your new residence if you or your spouse or common-law partner sold your old residence as a result of your move.
Visit CRA for a more details on how to claim your moving expense.
Also, check out this great article from Moneysense Magazine – it outlines what the tax the deductions would be like for the author’s friend Neal. Neal’s move from Toronto to Vancouver gave him a direct tax deduction of $8,504.
Moving Expenses he can can claim included:
Breaking his apartment lease – $1,100
Disconnect cable, phone, utility and wireless in Toronto – $25
Reconnect cable, phone, utility and wireless in Vancouver – $525
Changing all legal documents (drivers license etc.) – $100
Transportation and storage costs for all personal effects – $3,000
Check out the full article!