Moving Expenses
If you’ve recently relocated for work, you may be eligible to claim moving expenses on your tax return. The Canada Revenue Agency (CRA) allows individuals to deduct certain costs associated with moving, provided they meet specific conditions.
Who Can Claim Moving Expenses?
You can claim moving expenses if:
✅ You moved at least 40 km closer to a new work location or business.
✅ You are earning employment or business income at your new location.
Unfortunately, moving expenses cannot be claimed if you are simply relocating for personal reasons or to work remotely.
What Expenses Can Be Claimed?
If you meet the eligibility criteria, the following expenses can be deducted:
- Moving Company Fees or Truck Rental
- Travel Costs (fuel, meals, accommodations for you and your family)
- Temporary Living Expenses (up to 15 days for hotel & meals)
- Lease Cancellation Fees
- Costs of Selling Your Old Home (real estate commissions, legal fees, mortgage discharge fees)
- Costs of Buying a New Home (only legal fees & land transfer tax if you sold your previous home)
- Utility Disconnection & Reconnection Fees
Limitations to Keep in Mind
- You can only deduct moving expenses up to the amount of employment income earned at the new location in the same year.
- Any unused amount can be carried forward to a future year.
- If your employer reimburses you for moving costs, you cannot claim those expenses unless the reimbursement is included in your taxable income.
Common Issues & Case Studies
Case Study 1: Moving for a New Job – Eligible Expenses
Scenario:
David got a new job in Toronto and moved from Ottawa. His moving details:
- Distance from old home to new job: 450 km
- Distance from new home to new job: 10 km
- Moving expenses:
- Moving company: $3,500
- Temporary accommodation (2 weeks): $1,400
- Meals & transportation during the move: $500
David wants to claim his moving expenses on his taxes.
CRA Rule & Solution:
- To qualify, the new home must be at least 40 km closer to the new job.
- David’s move qualifies because 450 km → 10 km is a significant reduction.
- He can deduct all eligible moving expenses.
📌 Example Claim Calculation:
Total Eligible Moving Expenses = $5,400 ($3,500 + $1,400 + $500)
David’s taxable income before deductions = $70,000
After deduction, his taxable income = $64,600
💡 Tip: Keep receipts for all expenses, including moving trucks, hotels, and meals.
Case Study 2: Moving for University – Non-Deductible Expenses
Scenario:
Emily is a university student who moved from Calgary to Edmonton for her bachelor’s degree at the University of Alberta. She spent:
- $2,000 on moving her belongings.
- $1,500 on first and last month’s rent.
- $800 on new furniture.
She wants to claim $4,300 as a moving expense.
CRA Rule & Solution:
- Full-time students moving for school are NOT eligible for moving expenses unless they also earn taxable income at the new location.
- New furniture and rental deposits are NOT deductible.
- If Emily had a part-time job in Edmonton, she might be able to claim some expenses.
📌 Example CRA Decision:
Emily’s claimable expenses = $0 (since she has no income at her new location).
💡 Tip: Students moving for school should check if they have taxable income to qualify for deductions.
Case Study 3: Self-Employed Moving for Work
Scenario:
Raj is a self-employed IT consultant who moved from Vancouver to Calgary to serve more clients. His move details:
- Distance from old home to new business location: 1,200 km
- Distance from new home to new business: 15 km
- Moving costs:
- Rental truck & gas: $2,800
- Storage fees: $600
- Lease cancellation penalty: $1,200
- Realtor & legal fees (selling old home): $5,500
- Meals & hotels for the move: $1,000
Raj wants to claim the full $11,100 in moving expenses.
CRA Rule & Solution:
- Self-employed individuals qualify if moving at least 40 km closer to their business.
- Raj meets the requirement because his move was 1,200 km → 15 km.
- Eligible Expenses: Truck rental, storage, lease penalty, realtor fees, meals, and hotels.
📌 Example Claim Calculation:
Total Eligible Expenses = $11,100
Raj’s business income before deductions = $85,000
After deduction, taxable income = $73,900
💡 Tip: Business owners moving for work should ensure they have proper receipts and documentation.
Case Study 4: Moving, but Employer Reimbursed the Cost
Scenario:
Sophia relocated from Halifax to Montreal for her new job. Her company covered:
- Moving truck & packing services: $4,500
- Temporary housing (1 month): $2,500
Sophia paid out-of-pocket for:
- Furniture storage: $1,200
- Rental deposit: $1,000
She wants to claim $2,200 in moving expenses.
CRA Rule & Solution:
- Expenses reimbursed by an employer CANNOT be claimed.
- However, any expenses not covered by her employer (like storage) can be claimed.
- Rental deposits are NOT deductible.
📌 Example Claim Calculation:
Sophia’s claimable expenses = $1,200 (storage fees)
💡 Tip: If an employer reimburses moving costs, check whether the amount was included as taxable income on the T4 slip.
Key Takeaways
✔ Moves must be at least 40 km closer to the new job/business.
✔ Employer-paid moving costs are NOT deductible.
✔ Self-employed individuals can claim expenses when relocating for business.
✔ Students moving for school generally do NOT qualify unless they have taxable income.
Need Help? Contact ZAP Accounting!
If you have questions about claiming moving expenses or need assistance filing your tax return, ZAP Accounting is here to help. Contact us at +1 236 300 3322 for expert tax advice and support!
Disclaimer
This article provides general information about child care expenses based on current tax laws. Tax regulations are subject to change, and this article may not reflect the latest updates. The information provided may contain errors or omissions. Before making any tax-related decisions, please consult the CRA website or seek professional advice from a ZAP Accounting expert to ensure accuracy and compliance.
