Understanding if moving expenses can be claimed, and if so which ones are best left to experts such as Edmonton bookkeeping. This is a bit of a complex issue. And while moving expenses can be claimed. Which ones can be claimed, as well as how much can be a little bit tricky. It is also based on a certain amount of eligibility factors. On whether a person can even claim them or not.
And while many people wish to claim their moving expenses. They may not be eligible. However, this is a question best left to hiring and Edmonton bookkeeping company. And giving them all of a person’s receipts, and letting them sort through the issue. So that a person can end up with the best tax return possible.
There are three criteria to determine a person’s eligibility. On whether they can claim their moving expenses on their taxes or not. The first one is that the need to be not getting reimbursed from either their corporation or from their employer. As long as they are not going to be getting reimbursed. They have met the first eligibility requirement.
The second eligibility requirement is that they have to be living in Canada, moving to another residence in Canada. It can be within the province, or from one province to another. But they cannot move from outside of Canada inside Canada. And then claim that amount on their taxes.
And finally, they must be moving 40 km closer to their work. And when many people hear this, they often think that they must be moving 40 km in total distance. But this is not true. They must be 40 km closer to the work in order to qualify. And then if they have moved 40 km closer. The need to have sold their previous residence.
However, there is a concession that the Canada revenue agency allows. If a person has tried to sell their place but has been unsuccessful. As long as they can provide reasonable documentation. Proving that they have made an effort to sell their residence. Then they will be able to meet these eligibility requirements.
After a person has met all of the eligibility requirements. Edmonton bookkeeping says there is a maximum amount that they can claim. And that is limited to the net income that they are going to be earning in their job. If it is a student that is moving in order to be closer to school. The amount that they can claim on moving expenses. Is limited to the amount they are getting from a government grant if they are receiving a grant.
Therefore, it can be a complex issue. That requires a lot of knowledge about taxes. And the best-case scenario. Will be for someone keeping all of their receipts associated with their move. And then letting their Edmonton bookkeeping company figure out if they qualify for their moving expenses, and how much they can claim.
What Are You Looking To Do With Edmonton Bookkeeping?
While many people want to claim their moving expenses on their personal taxes says Edmonton bookkeeping. This is to minimize the taxes that they end up paying. Because the average Canadian pays 43% of their entire income in a variety of taxes. These taxes can include things from GST, fuel tax, to income tax and taxes like CPP and EI. Therefore, since so many Canadians pay so much in taxes. In a mise and that is very important to most of them.
However, what counts as a moving expense can be a little bit difficult for the average person to figure out. This is why it is very valuable to hire Edmonton bookkeeping to help people figure out which one of their moving expenses they are going to be able to use.
For example, many people are aware that they can claim the travel expenses that they incur while they are moving. Including the fuel cost, replacing tires that needed replacing on the journey, and meals and accommodations. However, many people may not be aware that they can claim the air B&B that they needed to rent after the movers showed up to pack up their house, but before they were able to start their journey to their new home.
Those temporary living expenses can even be extended to once they get to their new residence if there are a few days for the can take possession of the home. Or if their belongings have not arrived yet. Edmonton bookkeeping says they can stay in a hotel, or rent an air B&B. And claim those living expenses as well.
However, one important thing that many people may not be aware of these temporary living expenses. Is that they can only be fifteen days of expenses that a person can claim. Therefore, if a person tries to claim more than that, they may not realize that they are not allowed to.
People may understand that they can claim the company that they hire to move their furniture from one residence to the other. But they may not realize that the can claim the people that they hired to pack their house or the people that they hired to move it into the moving truck. Or that the storage of their belongings, can be claimed. If they did not have possession of their home when they initially got there belongings to it.
Even the insurance that they paid for the moving truck and lease cancellation insurance can also be claimed in their moving expenses. Therefore, anything that a person paid for during the entire experience of moving should be. So that their bookkeeper can figure out what expenses are claimable.
It can be a very complex issue understanding all of the moving expenses. And it is very important if a person wants to be able to claim as much of the moving expenses as they can. To keep all of their receipts, and then hire and Edmonton bookkeeping company to help them figure out what receipts are usable. And how much they can claim per year.