Did You Make a Move This Year That Could Affect Your Taxes?
Perhaps you made a move this year so you could find new employment. Or maybe your employer had you locate. Then again it could be that you are a student and have changed your residence to be closer to your educational institution. Any of the reasons for moving could have an affect on your taxes when you file next year, for this current year.
There are some qualifications that you must meet in order to claim the allowed expenses for this move.
If the move was for educational purposes then you must be a full time student that is taking their education at a university, college or other type of teaching facility that is giving courses at a post secondary level.
In addition to this for any of the approved moves regarding taxes the distance of the move to your new home, calculated by the shortest standard public route must be 40 kilometres closer.
As a student you may not have an income from employment from which you could deduct the moving expenses. However, if you have received scholarships, bursaries, research grants, fellowships or some type of prize money then you can use your expenses against these.
If you have moved for business purposes such as to run a business for your employer, or to start a business of your own, then the applicable moving expenses can be applied against the income you will receive from this.
For each moving circumstance that qualifies there are specific criteria that must be met. Once you have met the eligibility requirements then there are specific expenses that you may be able to claim. These could include….
Transportation and storage
A max. of 15 days temporary living expenses
Lease cancellation fees
Maintenance costs of up to $5,000. To maintain your previous residence
Selling costs of your old residence
Purchasing costs of your new residence
Each of these potential expenses that may qualify have their own specific rules attached to them. Be sure to talk to your accountant about your move and what expenses you incurred, so he can address them accordingly when completing your tax return.