Tax season is not that far away. If you’ve relocated domestically for work during 2014 you may be eligible for some tax deductions.
Anyone who has moved domestically to start a new job or to maintain a job and relocated at least 40 km closer to a new workplace may be able to deduct eligible moving expenses when filing taxes for 2014. Acceptable moving expenses can cover a wide range of things, basically any money spent due to relocation for employment is covered.
Most expenses created by leaving an old home are typically covered. If a property was owned the seller may be required to show that all reasonable efforts were made to sell the previous property. Some common examples of deductible expenses related to leaving a home may include:
- Loss of money due to breaking a rental agreement
- Costs associated with the sale of a previous property
- The cost of movers and transportation of household belongings
- Money spent on accommodations and food during the move (up to 15 days is
covered) - Costs from maintaining a vacant property including mortgage interest, home
insurance, property taxes, utilities
Any expenses paid by an employers as part of a employee relocation agreement are not covered. All out-of-pocket moving expenses not covered by an employer can be claimed when filing taxes. Many people who participated in a company paid employee relocation program still have deductible expenses not covered by their employer.
It’s important to research your options with Revenue Canada, keep all documentation and speak to your financial advisor to fully maximize any employee relocation tax benefits. Learn more about potential employee relocation tax deductions at: http://www.cra-arc.gc.ca/tx/bsnss/tpcs/pyrll/bnfts/prvdd/mvng/menu-eng.html.
