You may be surprised to learn that you can claim moving expenses on your taxes. You can claim meals, vehicle, cost of hiring movers and many other expenses if you meet certain eligibility criteria.
You can claim eligible moving expenses if :
You can claim the cost of hiring movers, meals, gas, temporary accommodation and much more.
If your move qualifies, the government will allow you to claim moving expenses on your tax return. Canada allows a lot of expenses associated with your move can be claimed. Reimbursements include:
You could get $2456 in gas expenses reimbursed moving from Vancouver to Toronto
You should keep receipts for all of the moving expenses you incur, in case you are asked to back up your claim. However, there are two types of simplifies claims you can log without paperwork: meals and vehicle expenses.
The simplified vehicle claim is based on a flat per-kilometer rate, as long as the vehicle you drive is your own.
You use the rate that applies in the province you are leaving. If you are driving from Vancouver to Toronto you use British Columbia’s reimbursement rate. The rate changes each year, but for illustration purposes at the current rate of 56.0 cents/kilometre. You could claim $2456 for the 4389KM drive.
The flat rate for meals is currently $23 per meal, to a maximum of $69 per day per person. For a family of four making the 4-day drive from Vancouver to Toronto, that adds up to a $1104 reimbursement. If your meal costs exceed $69 a day, hang on to your receipts and claim the actual amount you spent on your tax return.
Also, if you move before you old house is sold you may be able to claim maintenance costs, including mortgage interest, property taxes, insurance and utilities, to a maximum of $5,000. To qualify, your house must empty and marketed for sale.
That’s a lot of potential savings on your move and it may allow you to hire movers to do the heavy lifting for you at no or low cost.
For the latest eligibility requirements , valid deductions and calculations for claiming moving expenses on taxes, visit Revenue Canada