How to Deduct Moving Expenses the Right Way

Рет қаралды 6,293

Күн бұрын

Moving homes closer to your work location? Or moving because you need more space? Either way, wouldn’t it be nice to know if some/all of your moving expenses are tax deductible?
In today's video, I’ll share what you need to know about your moving expense and where CRA stands on making these moving expenses tax deductible 😉
If you have any questions or thoughts after watching this video, leave a comment below, and I’ll respond as soon as possible.
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Tax planning is a personalized decision and will depend on your situation, priorities, and risk tolerance. Consult with your own legal and tax advisors to ensure you get the best advice personalized for you.
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Пікірлер: 66

@koystoryvlogs8192 4 ай бұрын

Hi. Thank you for this helpful video. I moved to Canada from South Korea last 2022. Can I claim moving expenses for the plane tickets that I bought? Thank you!

@nickp7199 9 ай бұрын

Can i add Land transfer tax as part of the "Taxes paid for the registration or transfer of title" section in the T1-M form?

@aazdc4936 9 ай бұрын

Great video, thank you. My first time on the channel and I'm following you now. If I'm moving from a small apartment to a house because I need to work from home, will I be eligible for the moving deduction?

@investment-ot5lv 3 ай бұрын

great video, i just have a question, let's say that a moving company charges me $6,000 plus tax to move from one provice to another. does the full amount tax deductible or just the tax portion?

@tracyandclothestranformation 2 жыл бұрын

Thanks for very useful information ❤

@RealEstateTaxTips 2 жыл бұрын

Thanks for being here!

@dakshanakulconsultancy1403 Жыл бұрын

Now with work from home concept and I recently moved from Winnipeg to London and work for same company permanently working from home. Can I still claim the moving expenses with my scenario??

@jx4355 Жыл бұрын

Thanks for the video. Can I ask where to file Moving expenses carried forward from a prior year? Do I need to file T1-M form again? I already used a partial of the allowable moving expenses in 2021. Thanks

@RealEstateTaxTips Жыл бұрын

Unfortunately you will need to file the T1M again to claim the balance of the moving expenses

@sherryluo3252 2 жыл бұрын

Thank you so much for the insightful video! One quick question: I will move from Montreal to Vancouver this year. My plan is to stay at my parents' house there for a couple of months before purchasing my own condo. In this case, are my moving expenses and fees related to buying the new home still tax deductible?

@RealEstateTaxTips 2 жыл бұрын

You would have to move to earn employment income or attend a post secondary school to qualify for a deduction. Unfortunately, based on the interpretation I see, earning rental income does not count.

@manpreetpaul5703 7 ай бұрын

Thanks… it’s very useful information

@RealEstateTaxTips 7 ай бұрын

Glad it was helpful!

@zaeemmalik7746 Жыл бұрын

Thanks alot for the info! I got my job back in march but waited until November to move closer to work when my lease expired. Did I pass the timeframe for relocation, if there's one?

@RealEstateTaxTips Жыл бұрын

I don't believe that there is one... make sure you check with CRA's eligibility and speak to your accountant that knows your situation. Without diving deeper into details, it's difficult to generalize.

@nicolek2345 4 ай бұрын

I would like to know if I moved from GTA to Calgary in Sep and I got a job in Dec, am I eligible to claim these expenses? Thanks

@shubham7393 2 жыл бұрын

Thank you this was extremely helpful. Keep them coming. One question : If I received relocation package in my offer, but it was transferred to another country bank account, can I still claim moving expenses?

@RealEstateTaxTips 2 жыл бұрын

If you receive money for moving, you would have to offset against your total moving expenses.

@derekhau 2 жыл бұрын

Very useful information, thanks Cherry. For moving expenses, does the same principle apply for Canadian citizen relocating from other countries back to Canada if they find a new job and surely the new home is much closer to the new working location?

@richardmorris8157 2 жыл бұрын

Cherry, it is a great advantage and privilege to receive your ongoing advice on these important topics. Keep up the excellent service.

@RealEstateTaxTips 2 жыл бұрын

The answer is it depends... to qualify for the deduction, you're required to be the deemed resident or factual resident of Canada. If you weren't a deemed resident or factual resident prior to the move, the moving expenses would not have been deductible. Feel free to check out the CRA's website for details: www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-21900-moving-expenses/line-21900-where-you-move.html

@DavidArthurScott 2 жыл бұрын

Quick question! I moved 350km closer to my rental units to better manage them. As a sole proprietor who combines work and rental income would my move qualify? Thanks!

@RealEstateTaxTips 2 жыл бұрын

If you are moving to earn self-employed income or employment income, you qualify to claim moving expenses. If you report your rental income as rental income on your personal tax return, chances are, you won't be qualified to claim moving expenses as a deduction unfortunately. For more information, check out CRA's Income Tax Folio on Moving expenses www.canada.ca/en/revenue-agency/services/tax/technical-information/income-tax/income-tax-folios-index/series-1-individuals/folio-3-family-unit-issues/income-tax-folio-s1-f3-c4-moving-expenses.html#toc4

@msmintygreen 2 жыл бұрын

Great video! Do you have a video on avoiding/minimizing capital gains tax? I’ve owned a condo in Scarborough for almost a year now and my tenants are moving out. I could move in, but I’d prefer to sell and buy a detached house as comparable condos are selling for 250k more than I paid. Is there any way to avoid capital gains tax? Should I move in for x amount of months/years? Thanks!

@RealEstateTaxTips 2 жыл бұрын

kzfaq.info/get/bejne/ippihJl8p9WmhH0.html Also, refer back to my blog at RealEstateTaxTips.ca and there are plenty of articles there for tips. At the end, if you still aren't sure, you can always reach out to setup a paid consultation with our team to get your questions answered.

@AhmedAli-os2kp 2 жыл бұрын

You rock as usual!

@RealEstateTaxTips 2 жыл бұрын

thank you

@rishibhatnagar7116 2 жыл бұрын

Hi Cherry!!, Great video. Just wanted to clarify that I'm an international student and had moved to study at the university(full-time) in Canada. So, I would be able to claim the airline cost as a moving expense, right?

@RealEstateTaxTips 2 жыл бұрын

Hi Rishi, admittedly I am not an expert in international student travel expenses. You can find out more via CRA's website www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-21900-moving-expenses/line-21900-you-a-full-time-student.html Just a word of caution: you can only claim the moving expenses against taxable scholarship if you are students or you can only claim the moving expenses against the employment income you will be receiving while at school. Most scholarships/bursaries these days are not taxable. It does not give you any refund if you have no taxable scholarship or employment income. Hope this helps.

@shindonbaby5804 2 жыл бұрын

Hi Cherry! Great video. Congratulations. I have a doubt. We moved last year from Scarborough to Cambridge but we don’t own any property. We used to live in Scarborough in a basement paying rent and now in an apartment paying rent. Do we qualify for moving expenses?

@RealEstateTaxTips 2 жыл бұрын

As long as you are moving to earn employment income OR business income OR attend school, you would qualify to claim moving expenses. Moving expenses include cost of movers, gas, meals, etc. You do need to show that you're earning the correct type of income. Property income does not count.

@crisb6755 2 жыл бұрын

Great video Cherry! If somebody is moving for doing a master or a PHD, are the moving expenses qualifying to be deducted?

@RealEstateTaxTips 2 жыл бұрын

Thanks Cris! You maybe able to claim the expenses if you meet CRA's criteria. Per CRA, "Generally, you can claim moving expenses you paid in the year if both of the following apply: you moved to work or to run a business at a new location, or you moved to study courses as a full-time student enrolled in a post-secondary program at a university, a college, or other educational institution your new home must be at least 40 kilometres closer (by the shortest public route) to your new work location or school"

@racedog19 Ай бұрын

Great video.

@RealEstateTaxTips Ай бұрын

Thanks!

@tylerohara2819 2 жыл бұрын

hi I am moving from Alberta to Quebec, Gatineau. to work in Ottawa. I need to drive there with my wife and 3 month old son. I think it will take about 5 days to get there, can I claim hotel expenses along the way? and if so how much would be covered for hotels?

@RealEstateTaxTips 2 жыл бұрын

You will be eligible to claim your lodging expenses. Make sure you keep the actual hotel receipts to substantiate your claim.

@lihuiliu41 Жыл бұрын

Thank you so much for the useful information. One question: I moved from Winnipeg to Windsor in 2022, and sold my old house in 2022, I plan to buy a new house in 2023. Can I claim the selling cost of my old house in 2022 tax return?

@RealEstateTaxTips Жыл бұрын

This goes back to whether you are moving as a result of attending a qualified post secondary school or moving for work. The maximum amount you can claim as a result of the move is restricted by the amount of the income you're earning from that particular job if you are relocating for work purpose. Be sure to speak to an accountant before you file your move.

@iShrix Жыл бұрын

Eddie Pal sent me here! :)

@shayanjiwa4167 8 ай бұрын

Hi, Thanks for great video. Me and my wife moved from BC to ON as i got a transfer from my job. Company is same but the location is different. Company now moved me back to BC after 5 months. Am i eligible to claim both sides of moving expenses? Considering company did not provide any expense?

@RealEstateTaxTips 8 ай бұрын

You will need documentation from your employer that they require you to move on both occasions.

@shayanjiwa4167 8 ай бұрын

@@RealEstateTaxTipsyes i have letters about both moves

@jonathanshing706 Жыл бұрын

A question from my side is, if there's subsidy from a company to support the move say $10,000. It is still considered as income anyway so the net income becomes about $6,000. Then the calculated deductible moving expense is $10,000. Do I get $4000 tax return from the government? Thanks and it's a great video.

@RealEstateTaxTips Жыл бұрын

If you get subsidies/help from your work, you will need to offset the subsidies against the moving expense. Say subsidies received is $10K, and you incurred $16K moving expense. Assuming you meet all the critieria for claiming moving expenses, you can claim a deduction of $6K moving expenses. This $6K is offset against the income you earned from the new role in the new city. Tax refund is calculated based on your marginal tax rate.

@owenfu8205 Жыл бұрын

Best video, if i get a job in Alberta, can i claim the moving expense from USA to Canada? or my son is moving from Ontario to Alberta? thumb up to the video

@RealEstateTaxTips Жыл бұрын

Yes you can, provided it the move is for the purpose of earning employment income and reasonable close the start of your new job that last longer than 39 weeks

@luisnarvaez2699 Жыл бұрын

Hi Cherry, i moved Mississauga to Coquitlam in 2022. Can i deduct for my 2022 taxes.

@RealEstateTaxTips Жыл бұрын

If you are moving for employment reasons and you are earning employment income, you would likely be able to deduct the expenses. The key is to show the income received from the employment.

@cam-vv4lc Жыл бұрын

Well i previously commentted. Now my receipts are being reviewed. I will keep you posted how it goes, of course they send review after i just put receipts away in filing

@RealEstateTaxTips Жыл бұрын

Yes please keep me posted. Good luck

@bhavini5602 2 жыл бұрын

Hi cherry, if I moved 2 time in the same year, can I claim both moving expenses?

@RealEstateTaxTips 2 жыл бұрын

Provided that you meet the qualification criteria of deducting CRA, including moving to earn employment/business income, etc. - yes... you can claim two times moving expenses.

@bhavini5602 2 жыл бұрын

@@RealEstateTaxTips thank you cherry

@bhavini5602 2 жыл бұрын

Hi cherry, if I use simplified method, do I need receipts to support moving and meal expense?

@travelwilder Жыл бұрын

i am moving from Toronto to Calgary for a new employment. i will be moving to a rented property. am i still eligible for moving expenses.

@RealEstateTaxTips Жыл бұрын

Moving expenses are eligible if you are moving for employment purpose. Only certain types of expenses are allowed such as the moving expenses, meals, and some other expenses. Make sure you check with your accountant before filing and always keep your receipts

@nicolasacciainoli2524 Жыл бұрын

If i moved 2 years ago, can i claim this year?

@RealEstateTaxTips Жыл бұрын

You can carry forward provided that… you didn’t have enough employment income to claim the expenses in previous years

@spiritual-world-universe Жыл бұрын

where can I find "How to"? I found "What" I can claim only.

@RealEstateTaxTips Жыл бұрын

Feel free to search the CRA website directly. There's a specific form on your personal tax return for moving expenses deduction.

@cam-vv4lc Жыл бұрын

How much can you deduct I cannot find a limit and have 50000 dollars in expenses including real estate fees

@cam-vv4lc Жыл бұрын

I kept all receipts and transferred to AB from ON

@RealEstateTaxTips Жыл бұрын

Assuming you're eligible, maximum you can deduct is based on the income you receive from your new job... and undeducted qualified expenses can also be carried forward to future for deduction

@cam-vv4lc Жыл бұрын

@@RealEstateTaxTips yes looks like I have 41k in expenses with receipts and approx 45k net income... Using turbo tax my return is sitting around 14k without adding my rrsp contributions

@cam-vv4lc Жыл бұрын

Not sure if it should be more... That is net since transfer