With tax season in full-swing you may be finding yourself scouring through the junk drawer for any receipts you can count as a deduction.
- Kid’s hockey league? Deduction.
- That donation to the local hospital foundation? Deduction.
But if you were one of the hundreds of thousands of Canadians who moved homes in 2017 you may be missing out of your biggest deduction of all … your moving expenses!
If you moved to a new home for work, or to operate a new business, you may be entitled to deduct any and all costs associated with that relocation. To qualify, your new home must be at least 40 kilometres (by the shortest usual public route) closer to your new work or school. (For more information on qualifying, refer to the CRA website)
The most common deductions are costs like storage and transportation – your moving company, storage units, and insurance. If your move was a bit farther you can also claim travel costs such as vehicle expenses, meals, and temporary residence or accommodation.
Remember that installation charge the hydro company charged for your new hookup? Or the money you paid to have your vehicle registration updated? Those incidentals, and any costs associated with setting up your new home and updating your legal documents are also write-offs.
Finally – make sure you include anything you paid in the process of buying or selling your home. The cost of your lawyer, your realtor’s commission, and even the money you paid to have your home inspected.
It might seem like a lot, but keeping these documents organized can lead to a big pay-off when tax season arrives. If you’re in the middle of your move, or planning one in the upcoming year, keep it digital by snapping pictures or scanning of all your receipts as soon as you get them. Then make sure you use MoveSnap to keep all of your other moving tasks organized along the way!