Eligible Moving Expense

Moving expenses may be deductible when the move brings a taxpayer at least 40 km closer (by the shortest usual public route) to a new work location or eligible educational institution.

Who can claim moving expenses

• Employees
• Self-employed individuals
• Full-time students (under eligible conditions)

Moving expenses are generally deductible against specific types of income earned at the new location (for example, employment or self-employment income). Students may be limited to the taxable portion of certain scholarship/bursary/grant income that must be included in income.

Carry-forward (unused moving expenses)

If eligible moving expenses exceed eligible income at the new location in the year of the move, the unused amount may be carried forward and applied against eligible income earned at the new location in future years.

Examples of expenses that may be eligible

• Costs of selling an old residence (for example advertising, legal fees, real estate commission, and mortgage penalty where applicable)
• Costs of purchasing a new residence in certain situations

Examples of expenses that are not eligible

• Home sale losses
• House-hunting trips before the move
• Job hunting travel in another city
• Repairs to make an old home more saleable
• Mail-forwarding costs and various personal replacement costs

Situations where moving expenses are not allowable

• The move does not meet the 40 km rule
• Reimbursed expenses not included in income (depending on the circumstances)
• Missing supporting documentation