It is very beneficial for people to be able to claim as many expenses on their personal taxes as possible says Edmonton bookkeeping. Which has a lot of people who have moved in the past year wondering if they can claim their moving expenses? And if so, how much are they eligible to claim on their income tax return.
There might be a variety of reasons why people are moving. Whether it is to be closer to work because they are getting a promotion. Perhaps they got a brand-new job, or are moving to be closer to the family such as aging parents.
It does not really matter the reason why people are moving, the reason why it does not matter as much as other factors. In order to claim their moving expenses on their taxes, Canada’s revenue agency requires a variety of apartments to be met first.
People must ensure that they are moving at least 40 km closer to their work. Or where they are going to be working. This means that people who have moved within the same city can even claim their moving expenses. As long as they are moving closer to their workplace than they previously were by 40 km minimum.
The next eligibility requirement is that they must be moving from within Canada to another residence within Canada. People cannot be moving into the country for the first time and claim that move on their income taxes.
The third requirement is that people cannot have already been reimbursed for their moving expenses. For example, their employer might reimburse them for all of their moving expenses in order to take that promotion. Or, they own a corporation that reimburses them for their moving expenses.
And finally, Canada revenue agency requires that people have sold their previous residence if they owned it. In order to claim their moving expenses. However, people who have tried hard to sell their residence, but are unable to by the time they move. May be able to claim those moving expenses. As long as they can provide documentation that they did try to sell their home.
As long as people are meeting these requirements, Edmonton bookkeeping says they can claim their moving expenses on their tax return. However, the amount that they claim will be limited to the net income they are going to be earning.
You can also carry forward their moving expenses into a future year. And this can be very beneficial if they were out of work for a portion of that year. Or they had to take enough time off to move, that they are not going to be reporting a full year of income.
Then there Edmonton bookkeeping company will be able to figure out what the best year to claim those moving expenses will be. So that they can claim as much as they possibly can. In order to get the maximum benefits and minimize their taxes.
The might even be able to claim some of their expenses in the current year, and they carry the rest of the expenses forward into the future year. So that people can use as much as they possibly can of their moving expenses. To help minimize their taxes.
Edmonton Bookkeeping | Personal Taxes And Moving Expenses
The reason why many people want to know if they can claim their moving expenses on their tax return says Edmonton bookkeeping. Is because they can significantly reduce the taxes that they owe at the end of the year.
In fact, the Fraser Institute did a survey and found that the average Canadian pays approximately 43% of their entire income in a variety of taxes. These taxes include things like GST, PST, fuel taxes, and things like income taxes, CPP, and EI.
In fact this is such a significant portion of the money that they earned in total. That only 37% of the amount that is left remaining goes towards things like paying for their rent or mortgage and food says Edmonton bookkeeping.
This is so significant, that anything that a person can do that can help minimize the taxes that they owe the government. Can help them keep as much of their income in their pocket as possible.
However, not every single expense that they incurred during the move is claimable. But also, people need to understand that there are a variety of expenses that many people are unaware that they can actually claim as well.
While many people understand that they can claim the fuel that they consume during the move, and meals and accommodations that they incurred along the way. Many people may not realize that they can claim all of their vehicle expenses. Such as if they needed to replace the tire, or if they needed to get an oil change, or have a mechanic look at their engine because of engine problems.
Even temporary living expenses can be claimed. For example, if the moved to their new residence, only to find that they could not take possession of it for several days. And then they needed to stay in a hotel or motel for the days before they could take their home. Those expenses are also eligible to be claimed.
Even if a person has to store their belongings in a storage facility before they can move into their home. They can claim those storage facility fees. And even if a person pays someone to pack their belongings, move it directly into the moving truck. In addition to the cost of the moving truck itself.
People can even claim insurance that they bite to protect their belongings, and lease cancellation insurance can be claimed as well.
With all of these expenses being unusual, it is much better for people to simply keep all of their receipts for every single expense that they incurred before, during and after their move. So that their Edmonton bookkeeping company can figure out what expenses can be claimed. And which expenses cannot be claimed. So that people are not discounting certain expenses that main fact be something that they can claim on their personal tax return.
This is so important, so anyone who is moving. Should keep all their receipts, and then talk to their bookkeeper at the end of the year. To find out for sure if they can claim these expenses are not.