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Many people think that as long as their move is for business purposes, that they can claim those expenses says Edmonton bookkeeping. And while that might be true if they are getting reimbursed by their company. This is not necessarily the case for the Canada revenue agency.

In fact, there needs to be several requirements met in order for a person to be able to claim their moving expenses on their personal taxes.

The first requirement that they must complete is that they need to be moving a minimum of 40 km closer to their place of work. Some people interpret this as moving a distance of 40 km, that brings them closer to work. But that is not the case. People need to be moving forty clambered towards their place of work in order to qualify.

Another requirement is that it must be a domestic move. It does not matter if it is within the same city, the same province or not. A person must be moving from Canadian residents to other Canadian residents. People moving from a foreign destination to Canada will not be eligible to claim their moving expenses. Even if they are moving because they got a job

The third requirement is that they cannot be getting reimbursed for anyone on their moving expenses if they are going to claim them on their personal taxes.

And as long as they have met all of these eligibility requirements, and have sold their previous house if they owned it. Then Canada revenue agency will allow them to claim that their moving expenses on their personal taxes.

However, the Canada revenue agency will allow people who have been trying legitimately. But have not been able to sell their homes as of yet. This means they need to be able to show documentation proving that they have been trying to sell their property but were unsuccessful.

After all these requirements are met, then people will be able to claim of the moving expenses that they incurred. But only to a maximum amount. This maximum amount will be based on the amount of money that they have earned in the past year.

Although, it is possible for people to claim those moving expenses in the next year. And they can strategize with their Edmonton bookkeeping company. About what is more advantageous to them. Should they claim all of their expenses this year? Or, are they going to make more money in the next year. And if so, they might be better off to claim their moving expenses in the next year.

Because this can be a complex decision to be made. Allowing people to even claim parts of their moving expenses this year, and the rest of them in the future year. His best decided with an expert, such as an Edmonton bookkeeping company.

If they think that they would be able to maximize their expenses in both years. It may be advantageous to split them up that way. But it is best decided by an expert. Because without expert advice, and may be difficult for a person to be able to make the right decision.

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The reason why people want to claim as many expenses as they possibly can on their personal taxes says Edmonton bookkeeping. It is to help minimize the taxes that they might have to pay.

The average Canadian ends up paying 43% of their entire income in a variety of taxes. Not just income tax and CPP and EI. But also GST, PST, fuel taxes, and carbon taxes just to name a few.

Because of the high amount of taxes that people pay. If they can minimize those taxes by claiming as many expenses as possible. That can significantly help them retain a lot of their income.

Therefore, if people have moving expenses. They may be able to minimize some of their taxes by claiming most of their expenses.

However, the problem is many people are not aware of all of the various expenses that can count as moving expenses. And if they know all of the potential expenses they can claim. Can help ensure that they claim as many of the expenses possible. To give them the biggest tax savings.

While many people know that they can claim gas, meals, and accommodations related to their moving expenses. There are so many more expenses that can count. That it is in a person’s best interest to keep every single receipt during their entire move. So that they do not end up discounting a receipt that they might be able to claim.

The first thing to keep in mind is that they can claim expenses for themselves as well as their entire family. As long as their entire family is moving with them.

The next thing that people need to keep in mind when they are claiming moving expenses. As that they can claim up to fifteen days of temporary living expenses.

What a temporary living expense is says Edmonton bookkeeping. Is an expense that they will incur either before they move, or after they move. That causes them to need to stay in alternative accommodations.

For example, if they need to vacate their house three days before they move. Because that is the only day the moving truck is available. Then they need to stay those few days in a hotel or motel. Because they will not have any belongings in their house.

Or, when they arrive at their destination, and there is a problem with the house and they cannot take possession of it immediately. But they need to stay somewhere. That is what can be classified as a temporary living expense.

By understanding all of the various expenses that people can claim. Can help ensure that they are getting the best benefits on their income taxes. By being able to claim as many expenses as is necessary. By hiring and Edmonton bookkeeping company. People can ensure that they are claiming as many expenses as they can to get the best tax benefits.