New Home, Who This? - Moving Expenses Explained

Did you move in 2024? You might be able to get some money back on your taxes.

In order to claim moving expenses on your taxes you must first meet both of these conditions:

1. You moved for work or to run a business at a new location or to study full time at post secondary

2. You moved at least 40km closer to your new worksite or school

If you move for work this can either be for a new job or to work at a new location with the same company.

If you satisfy both of those requirements you can then claim your moving expenses on a T1M form.

Special Circumstances:

Non-residents and Moving to Canada:

If you were a non-resident of Canada and moved to Canada for the first time you are not able to claim your move to Canada. However, once you have entered Canada you can claim your move between different locations as long as you meet the 2 criteria.

Moving From Canada

If you are a resident of Canada and you move to another country but you are still considered a factual resident or deemed resident of Canada AND you meet the other 2 conditions you can claim your move on your taxes.

Moving to Canada as a Resident

If you are considered a factual resident or a deemed resident of Canada and you meet the other 2 conditions you can claim your move on your taxes.

Expenses You Can Claim

Simplified vs. Detailed Calculations

When it comes to claiming travel vehicle expenses you can either claim a simplified per KM amount or you can claim the actual cost of your fuel on your receipts.

The same is true for claiming meal expenses. You can either claim a standard per meal amount for a maximum of 3 meals a day per person or you can claim the actual amount you paid on your receipts.

Pro Tip: It is almost always best to claim the simplified amounts for vehicle travel expenses and meals. This is typically a higher claim than if you were to claim your receipts.

Expenses you CAN NOT Claim:

• expenses for work done to make your old home more saleable

• any loss from the sale of your home

• travel expenses for house-hunting trips before you move

• travel expenses for job hunting in another city

• the value of items movers refused to take, such as plants, frozen food, ammunition, paint, and cleaning products

• expenses to clean or repair a rented home to meet the landlord's standards

• expenses to replace personal-use items such as tool sheds, firewood, drapes, and carpets

• mail-forwarding costs (such as with Canada Post)

• costs of transformers or adaptors for household appliances

• costs incurred in the sale of your old home if you delayed selling for investment purposes or until the real estate market improved

• mortgage default insurance

  
  

Generally, you cannot deduct the cost of moving a mobile home. However, if you have personal items in a mobile home when it is moved, you can deduct the cost of moving the home as long as it is not more than the estimated cost of moving those personal items separately.

How to Claim Them

You can only use your moving expenses again the income that you have earned at the new location. If you have not earned any income at that location or the income earned is less than your moving expenses you can carry any unused amount of moving expenses to the following year.

Want my help?

I am currently accepting new clients. I'd be happy to hop on a complementary, no-obligation Zoom call with you to discuss your tax situation in more detail, answer your questions, and get you a quote for my services. To book go to the booking calendar and select Personal Tax Filing.