Moving Expenses Criteria

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scorpionman
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Moving Expenses Criteria

Post by scorpionman » 24 Dec 2017 06:27

"You cannot claim moving expenses if you rent an apartment in another country where you are working temporarily and you maintain residential ties in Canada (for example, your spouse and children remain in your home in Canada), because your home in Canada is where we consider you to ordinarily reside."

I'm confused about this because the T1-M document also says if you are a factual resident of canada and move your home abroad (and have no spouse or children in Canada) you are still eligible to deduct moving expenses. Does it hinge on the concept of working temporarily? How is this determined?

Also does anyone know if the reason for the new work location has to be justified by activity on the ground at that location? For example, if you run an Internet business self employed or a CCPC and decide to pack up and go to a different city or country and do the same work there but a new work location is that a legitimate move even though the income is now earning at the new location?

And is there a minimum time to stay at each location outside Candaa before moving to a new site outside Canada? I imagine 1 month looks like a vacation but 6 months or 1 year might look different.

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kcowan
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Re: Moving Expenses Criteria

Post by kcowan » 24 Dec 2017 09:01

I made a claim in 1997 when I moved my business from Toronto to Vancouver. The CRA denied my claim based on their judgement that the extra costs were a part of a legal separation. I decided not to escalate because the costs were not that large.

So I suggest that you apply that test. If they deny it, what will your case be? And is it worth it to you.
For the fun of it...Keith

scorpionman
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Re: Moving Expenses Criteria

Post by scorpionman » 24 Dec 2017 09:26

I read the best way to go If you have a ccpc is to claim a moving employee reimbursement. Up to 650 is tax free and deductible to the corp. Above that it's a non-taxable benefit (https://www.canada.ca/en/revenue-agency ... ota_taxben) if it falls within the standard deductions. I'm assuming this means the employee gets the cash tax free and the employer deducts it from their expenses. I read somewhere that this tends to get less scrutiny than the personal credit.

But does the amount of the moving expenses have to be in relation to the income of your busienss or CCPC ? I mean if you have a little income and the moving reimbursement or expense is almost all the Income for year 1 is that alright as long as it doesn't tip too negative and looks like taking money out of the company tax free? Also does it go under, "8620 Employee benefits
association dues, clothing allowance, lodging, payroll
deductions/levies/taxes, and room and board "

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