There are a lot of misconceptions about whether people can claim their moving expenses on their personal tax return says Edmonton bookkeeping. And while many people can claim their moving expenses. There are several things that they need to keep in mind. To ensure that they are eligible to do so.
While people are able to claim their moving expenses, they need to ensure that they are moving from within Canada, to another residence in Canada. As well as moving 40 km closer to work. This does not mean that they moved 40 km in distance. But that specifically, in order to qualify as moving expenses on their personal tax return. They need to ensure that they are moving to be within 40 km to work.
And the final requirement on whether someone can claim their moving expenses or not. Is that the must not have been reimbursed by their employer, or by their corporation. As long as a person has fulfilled those three requirements. Then they will be able to claim some, if not all of their moving expenses.
However there is a maximum amount that people can claim. And it is limited to the net income they are going to be earning in their job. Therefore, the best case scenario is to keep all of the receipts related to their moving expenses. And then hiring Edmonton bookkeeping to figure out how much they can claim on their behalf.
Another reason why people should hire a bookkeeping company to do this calculation for them. Is because Canada revenue agency allows them to carry forward their moving expenses to the following year. So they may not be able to claim hundred percent of their moving expenses this year.
However, Edmonton bookkeeping will ensure that they can claim they can this year. In the carry forward the moving expenses into the following year. So that they can end up claiming all of their moving expenses within the two years.
However, many people are confused as to what is considered part of their moving expenses. For example, many people wonder if they can claim the amount they had to pay to store their belongings somewhere else. Either before they moved, or once they got to where they were moving to. But their new home was not ready to move into just yet.
That is actually a valid moving expense. And people can even claim the amount of money in cost them to hire people to pack all of their belongings, as well as the cost to move their belongings as well. Even the insurance that someone might have taken out to protect their belongings can be deducted off of their personal taxes.
Understanding moving expenses and personal taxes that can be complicated. However, hiring the right professionals, and getting Edmonton bookkeeping to help them with this. Can help ensure that they end up claiming as much as they can so that they do not miss out on any important deductions.
Edmonton Bookkeeping | Claiming Moving Expenses On Tax Return
Whether people are moving across the country, or moving within the city to be closer to work, Edmonton bookkeeping says any people may be eligible to claim their moving expenses.
However, many people are not aware that they are able to claim their moving expenses. Or what qualifies as a moving expense. And this lack of understanding can cost people. By not allowing them to claim all of their moving expenses on their taxes.
People can claim all of the travel expenses that are associated with moving. From vehicle expenses, such as paying for fuel during the trip. To any necessary maintenance that was required during the move. Including things like purchasing new tires.
People can also claim the meals that they needed to purchase, during their move. Not just for themselves, but for their entire family as well. Therefore, it is very important that people keep all of their receipts that they incur while they are in the process of moving.
Even claiming temporary residences are possible, if for example person needed to move out of their home in order to have their belongings packed up. Or once they get to their new home. But the home is not ready to move into, so they need to stay in a hotel or an air B&B.
However, people need to be aware when it comes to temporary living expenses. That they can only claim fifteen days of those temporary living expenses.
If a business owner did not sell their old residence before moving, they may not be eligible for moving expenses. Unless they are able to prove with documentation, that they did try to sell the property, but were unsuccessful.
If people are going to claim their moving expenses. Edmonton bookkeeping advises people to keep all of their receipts that they can. However, they might be able to use a simplified method that Canada revenue agency allows. That does not include adding up all of their receipts.
This simplified method takes seventeen dollars a day per person, plus a fifty-one dollars a day for meals. And then claiming forty-eight point five cents per kilometre for their entire travel. They can add all of this up based on how many days they were travelling. In order to claim that simplified amount on their taxes.
However, people should be careful if they are going to use this simplified method, because Canada revenue agency may still ask for documentation. And while it is simple to calculate. It is not a replacement of having proper documentation.
Once people understand that they can claim their moving expenses on their personal taxes. They can be more careful in keeping their receipts. So that they can claim all of their moving expenses at the end of the year.
However, the best thing for people to do will be to higher their Edmonton bookkeeping company to help them calculate this amount. So that they end up with the maximum amount that they can claim.