Buyers : Income tax

Your taxes and buying a property

Tax-deductible Moving Expenses*
If you move to take a job, start a business or go to school full time, you can usually deduct your moving expenses from your revenues if your new residence brings you at least 40 km closer to your workplace or school than your current residence.

To determine whether your move brings you at least 40 km closer to the new location, you must do the following calculation:
Subtract:

• The distance in kilometres between your new residence and your new workplace or school.

From:

• The distance in kilometres between your old residence and your new workplace or school.

The distance of 40 km is calculated as the shortest publicly accessible route.

The following persons can deduct moving expenses:

• Salaried employees
  
  
• Independent workers
  
  
• Full time students

Here are some admissible fees:

• transportation costs to move to your new residence (car expenses, meals and lodgings during your trip);
  
  
• transportation and storage costs for furniture and appliances (packing costs, moving fees, temporary storage and insurance);
  
  
• temporary food and lodging costs near your new or old residence (maximum of 15 days);
  
  
• lease cancellation fees for your previous residence;
  
  
• expenses incurred in the sale of your previous residence, including advertising costs, legal and notary fees, commissions paid to real-estate agents and penalties for early-payment of your mortgage;
  
  
• legal fees incurred in the purchase of your new residence as well as all taxes on the transfer or registration of the deed on your new residence.

*Source: T1-M Form (Claim for Moving Expenses)
Canada Customs and Revenue Agency