It may well be that you can deduct some or all of your moving expenses
on your personal income tax.
The general rule is that you may deduct moving expenses from your income
if the following apply:
You move your residence in order to earn salary, wages or self employed
income in a new location in Canada or
to begin full-time attendance at an educational institution
Your move results in your new residence being at least 40 Kilometers
(as the crow flies) closer than your former residence to your new
place of work or business, and
You cease carrying on business or employment at your former location.
In addition, the following rules apply:
Expenses may be deducted only from income earned at the new location;
No moving expenses that are paid for by your employer, or for which
you are reimbursed, may be claimed as a deduction.
You may, however, deduct the amount by which eligible expenses exceed
amounts paid by your employer or amounts reimbursed;
No moving expense deductions will be allowed for moves into or out of
Canada, except for certain students.
Deductions are limited to reasonable amounts actually paid for moving yourself,
your family, and household effects. This may include traveling costs, transportation
and storage(including items such as boats and trailers), temporary quarters,
legal fees, lease termination and the cost of selling your former
residence. Moving expenses must be deducted in the year of the move from
income at the new location. (If your moving expenses were greater than
the income earned at the new location in that year, the difference may
be carried forward and deducted from such income in the following year.)
Receipts and documentation of all eligible expenses should be retained.
Keep a record of gasoline and oil expenses if you use your own automobile
when moving.
