Meal and vehicle expenses can be calculated using either the detailed method or the simplified method. There is no limit to how much you can deduct for the expenses listed above, but be honest about the costs incurred and make sure to keep all your receipts on file just in case. If you were put in a position in 2021 where you were compelled to move 40 kilometres or more closer to work, there are some relatively generous deductions you can make to help soften the blow. How much can I deduct for moving expenses? Plus, if you purchased or sold a property as part of the move, you can deduct the selling costs such as legal fees, real estate commissions, mortgage penalties and even advertising. Did you shell out money to maintain an old residence while it stood vacant after your move? You can claim that, too, up to a maximum of $5,000. You can also claim a number of expenses incidental to your move: changing your address on any legal documents, replacing your driver’s licence and vehicle permits, even any utility hookups/disconnections incurred.ĭid you incur any expenses when cancelling the lease of your old residence? You can claim that. In addition to claiming the mileage you put on your car, you can also claim personal expenses related to the move such as meals, rental/hotel accommodations (up to a maximum of 25 days) and any additional vehicle expenses incurred. Eligible moving expenses include transportation costs such as all the mileage you put on your car, the cost of hiring movers to haul all your stuff to your new address, plus any packing expenses, insurance and any storage costs. If you qualify to claim moving expenses, you’ll be delighted to learn that there are a lot of things you can claim against your income. What type s of moving expenses can you claim? However, the fact remains that if you want to move or even have to move, don’t base your decision on whether the move is tax-deductible or not a move should always be about enjoying a greater quality of life. Moving from Mimico to be closer to your Bay Street office? Sorry, you’re out of luck. Moving from Barrie to be closer to your downtown Toronto Bay Street office? Good call, that’s tax-deductible. There is a qualifier, however – your new home must be at least 40 kilometres closer to your place of work than your prior location. If you have moved to be closer to your place of employment, it is possible to claim your moving expenses as a tax deduction. And the answer to that question is… it depends. Any way to get the money you’ve already spent to work harder for you at this time of year is entirely rational. In that light, it’s natural to ask are moving expenses tax-deductible. We’re talking about tax time that time of year when we scramble to add up all the receipts haphazardly thrown into a shoe box in the hopes that the government will owe you and not you owing the government. No, we’re not talking about your birthday or Valentine’s Day, daylight savings or even final exams for all the dedicated students out there. We are rapidly approaching the most anxiety-inducing time of the year again.
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