There is one question that Edmonton bookkeeping gets from a wide variety of people. Whether they are business owners or not. Is if they can claim the moving expenses that they incurred when they moved from one residence to another.
There are many things that an entrepreneur can claim when they move. But it also depends on many different factors. One of the most important things that they need to ensure. Is that they have moved within 40 km of their work. In order to be able to claim this on their taxes.
That does not mean that they moved more than 40 km from one residence to another says Edmonton bookkeeping. But that they moved 40 km closer to where they are working.
Another important consideration in understanding if someone can claim their moving expenses on their personal taxes. Is if they were moving from one location in Canada to another. This does not count if moved from outside of Canada to somewhere in Canada. It has to be from one location inside the country to another.
And finally, the third consideration on whether or not a person can claim their moving expenses. Is if they have not been reimbursed for their moving expenses from another source. Whether it is from their work. Or as a business owner, they took money out of the corporation to pay for the expenses.
As long as the person can fit within those three parameters, they will be able to claim some of their expenses on their personal tax return.
The reason why it is only some of their expenses and not all of them. Is because there is a maximum amount that a person can claim. And this maximum amount is based on a person’s income. However, if a person is a student, they also will be able to claim their moving expenses, but it will be limited if they are receiving a government grant for their schooling.
Whether a person is moving by themselves or moving the whole family. They will be able to claim all of the expenses incurred in the move. To the maximum amount based on the income that they will be earning at their job.
Even the travel expenses that a person incurs. Including all vehicle expenses, including their fuel, if they needed to replace tires during their journey. And even if they needed to purchase new insurance for their journey. In addition to that, they will be able to claim their meals as well as accommodations that they stayed in, during the course of the move.
Many times, people would need to stay in accommodations either to stay somewhere while the house is getting attacked up to leave. Or when they get to their new location, before they can move into the new place. However, people should be careful with these temporary living expenses. Because they are limited to just fifteen days that they can claim.
The moving expenses can be very tricky to understand. Anyone who would like to claim their moving expenses on their personal taxes should contact Edmonton bookkeeping and find out what they are entitled to. So that they can ensure that they are doing this accurately.
What Else Do We Have For Edmonton Bookkeeping?
Understanding what moving expenses people are entitled to can be complex, it is why people who have questions should contact their Edmonton bookkeeping company.
Not all of the expenses that they incur might be eligible. And many people may not be able to claim all of them within a certain year. Especially if through moving, people ended up having less than a full year of income.
By going to the experts at Edmonton bookkeeping. People will be able to find out that CRA allows people to carry forward their moving expenses into the following year. Enabling people to claim expenses that they can in the current year. And then carry forward the additional expenses into the next year. To end up getting the biggest benefit from claiming their moving expenses.
One thing that many people may not understand about claiming moving expenses. Is that if they still own the home that they moved from. They may not be eligible to claim their moving expenses.
This can be quite difficult, especially because it may be difficult to sell a home in certain economic circumstances. So there are some concessions that can be made. Edmonton bookkeeping says that as long as a person can prove that they have done is much as they can to sell that home. They may be able to claim their moving expenses.
And if a person has been able to prove that the made a reasonable attempt to sell the property before they moved. They may be eligible for claiming the maintenance costs of their old home on their personal taxes as well.
This can include expenses such as property taxes, utilities, and things such as hiring cleaners to take care of the place. As well as landscapers to mow the lawn in their absence.
If a person had to hire a real estate broker in order to sell their home on their behalf. They can also claim the commission of that broker. On their taxes. Including any associated fees with selling their home. Including legal fees and registration fees.
There may even be the ability to claim some incidental costs such as the cost of having to get new documents. Such as a new driver’s license. Or purchasing a vehicle permit for their new location. Even utility connections and disconnections can be part of this incidental cost, and can be claimable on a person’s personal tax return.
The best-case scenario will be for a person to keep every single receipt that they incurred through the entire moving process. And bring all of those organized receipts into their Edmonton bookkeeping company. And allow them to figure out how much they can claim. And what receipts they are going to use for that.
By understanding that they can claim their moving expenses. And that they are going to be able to find professionals who can help them figure that out. Can ensure that people are saving all of their receipts. So that they can ensure that they are minimizing their personal taxes.