In a nutshell, these are the expenses you incur when you move to a new residence that has to be 40 kilometres closer to your new workplace, place of business, or educational institution.
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March 13, 2022Moving Expenses. CRA Guide
What Are Moving Expenses?
Who May Claim Moving Expenses?
- An employed individual. Your new/old work must be 40 km closer to your new place of residence.
- A self-employed individual. Your new/old workplace must be 40 km closer to your new place of residence.
- A full-time student who takes a post-secondary program at a university, college or other educational institution.
Types of Income That Are Qualified for Moving Expenses
If you are an employed or self-employed individual, then you are allowed to deduct moving expenses only from:
- employment income
- self-employment income
Suppose you are a full-time student taking a post-secondary program at an educational institution. In that case, you are allowed to deduct moving expenses only from:
- scholarships
- bursaries
- grants
- certain prizes
- research grants
So, What Type of Moving Expenses You Are Allowed To Deduct?
The CRA allows subtracting the following types of costs from your income:
- Transportation and storage costs
- Travel expenses
- Temporary living expenses for a maximum of 15 days
- Cost of cancelling your lease
- Incidental charges related to your move
- Cost to maintain your old home when vacant (maximum of $5,000)
- Cost of selling your old home
- Cost of buying the new home
