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Competitive Edge Blog

  • alison28006

The Tale of 2 Footballers

First Footballer is Gordon. He moved he and his family and their possessions to Southern California to play football for 3 months, then came back to Canada and bought a house in Calgary.

Second Footballer is Tyler. Last year, he had an opportunity to play in Toronto. The decision was made to move himself there, but keep his family and belongings in Calgary until their home here sold.

According to CRA guideline, moving expenses paid during the year can generally be claimed if you meet for both of the following conditions:

  • You moved to a new location to work, start a business, or enroll at a university, college, or other institution. and

  • Your new commute to work or school, must be at least 40 km closer (by the shortest public route)

In Gordon's case, we will include the costs of either flying (with airline tickets), or driving down to California and back. Remember Gordon moved twice once to CA and once back to Canada. Gordon qualifies for both moves because in both instances he moved for employment purposes.

Eligible moving expenses include:

  • The cost of transporting household items, including boats and trailers, and storing them while you are in transit, if applicable

  • Moving expenses, including vehicle expenses, meals, and lodging, here we can choose between the detailed or simplified method. I often recommend the simplified method as you don’t have to keep receipts and it often works out just as good or better than the detailed method.

  • If applicable you are able to claim up to 15 days of temporary living expenses such as meals and temporary lodging (airbnb) near your old and/or new homes. Be aware that for this type of claim it is likely that you will be asked for documents showing how long you stayed at your temporary lodging.

  • Cost of canceling your old lease, if applicable

  • as well as Move-related incidentals such as:

    • Legal documents: changing your address with financial institutions or government agencies

    • Replacement of driving licenses and non-commercial vehicle permits, as well as out of province inspections and new registrations

    • Utility hookup and/or disconnection fees

  • And finally, if you incur Maintenance costs for your old home, after you have moved, but while you are making reasonable efforts to sell it, up to (maximum $5,000) including things like:

    • Mortgage Interest, property taxes, insurance premiums and heating and other utility expenses

In Tyler's case, he can also claim the real estate commissions, legal fees, temporary accommodation in Calgary or Toronto, and Ontario’s land transfer taxes on the purchase of their new home.

Moving expenses for work/school can be tricky to calculate and claim properly to maximize your claim. To help you save as much tax as possible, I would always recommend speaking with a tax professional who can provide you with personalized advice and guidance for any life event, such as the moves that these 2 footballers had last year.

Until next time,

Christine Walters

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