Moving Expenses

Have you moved to start a new job or carry on your self-employed business? You may be able to claim moving expenses on your tax return!

If you have moved to a new home to be employed or to carry on your self-employed business at a new location you can deduct eligible moving expenses against the income earned from the new location. Your new home must be at least 40 kilometers closer to your new place of work to be eligible to claim the moving expenses.

The moving expenses are limited to the income earned from your new work location, which does not include investment income, Employment Insurance benefits, or other types of income. If you have not earned enough income from your new job to fully utilize your moving expenses in the year you move, they can be carried forward to future tax returns to deduct against the income earned from that location.  

Eligible moving expenses include:

  • Transportation and storage costs;
  • Travel expenses such as gas, meals and accommodations;
  • Temporary living expenses;
  • Costs to maintain the old residence while trying to sell it and you are not living there (includes property tax, interest, insurance and utilities);
  • Cost of selling your old residence (includes real estate commissions and legal fees).

Moving expenses are also deductible if you move more than 40 kilometers to attend a post-secondary institution on a full-time basis. This deduction can only be used against income from scholarships, fellowships, bursaries, certain prizes and research grants. Since most scholarships and bursaries are non-taxable there may be no benefit to claiming the expenses. Once school is over and you then move 40 kilometers or more closer to a new location to start a summer job or your career after school then you could claim the expenses outlined above.

For a complete listing of eligible expenses or more details regarding moving expenses please contact one of our advisors and they will be happy to provide you with more information.