Many people believe that any moving expense they incurred over the past year is valid to claim on their personal taxes says Edmonton bookkeeping. But this is not entirely accurate. Not only are there are a number of requirements that have to be fulfilled before someone can claim moving expenses on their personal taxes.
But also, not every expense associated with moving is valid. And it often requires hiring and Edmonton bookkeeping company for people to be able to figure out what is a valid expense, and what is not.
Therefore, if people have moved in the past year. Consulting with the experts can help ensure that not only have they met important Canada revenue agency requirements. But also, so that they will be able to claim as much as they possibly can. To reap the best benefits.
The first thing that people need to take into consideration. Is that one of the important requirements they must clear for Canada revenue agency to accept they are moving expenses. Is that they are moving a minimum of 40 km closer to their place of work.
It needs to be pointed out that this does not mean of the total of 40 km away from their original location. But that it is actually in the direction of their work. People who have moved closer to their work have discovered too late, that they did not move far enough to qualify for claiming moving expenses.
The next thing that people should take into consideration if they are wanting to claim their moving expenses on their taxes. Is that they are moving domestically. It does not need to be within the same city or even the same province. But if people are moving from outside of the country into Canada. Even if they are already Canadian citizens. This will not count.
And finally, Canada revenue agency specifies that people cannot already be getting reimbursed for their claims. Therefore, as long as nobody else is reimbursing them for their move. Including their workplace. Or if they are business owners, they cannot be getting reimbursed by their corporation.
If they have met these requirements. Canada revenue agency also specifies that they need to sell their old residence. If they owned it. And if they were not able to sell it by the time they moved. They need to provide documentation showing that they made a reasonable effort to sell it.
In fact, the cost of selling their old home can be claimed if they had to sell it after they moved. Which is why it may be advantageous for people to hold off on claiming all of their moving expenses. Until everything has finalized.
These can be very complex issues to navigate. Which is why if anyone is going to be claiming their moving expenses on their personal taxes. They will benefit from hiring and Edmonton bookkeeping company. To help ensure that not only are they claiming as many expenses as possible. But they are also claiming a maximum amount in all the years that they are eligible to benefit.
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Many people are very eager to claim as many moving expenses as they possibly can on their personal taxes says Edmonton bookkeeping. Because that is going to allow them to minimize their tax payments to the government.
In fact, the average Canadian pays approximately 43% of their entire income in taxes according to the Fraser Institute. Including a variety of taxes such as income tax, CPP, and EI. As well as taxes such as PST, GST, carbon tax, and fuel tax just to name a few.
The more expenses they can claim on their personal taxes. And the bigger tax break they can enjoy. Which is why it is beneficial for those who have moved. To know exactly what moving expenses they are allowed to claim on their personal tax return.
While many people are aware of the typical traveling expenses that they can claim. Which are fuel costs, meals and accommodations? Many people may not realize that increased insurance for the journey, oil changes, and tire repairs can fall under this category as well.
People also know that they can claim the moving truck they hire to take their belongings to the new home. But they may not realize that the packing, and moving of those belongings into the truck. As well as unpacking can be claimed as well.
If people have taken out insurance on their belongings for the journey. This insurance is claimable. And if they needed to store their belongings in a storage unit. Before they had possession of their home. This also is something that they can claim as a moving expense.
There are a number of incidental costs that people can claim on their income taxes as well. Such as the disconnection fee that they will get when they cancel their utilities. And the connection fee that they are going to have to pay when they connect their utilities at the new location.
Edmonton bookkeeping says they can even claim the cost of obtaining new documentation with their new address on it. Including driver licenses, and provincial identification cards just to name a few. If a person needs to buy a new vehicle permanent at their new location. They can also count this as a moving expense.
Even if a person has not been able to sell their home before moving. All of the costs to maintain it before their sale can be claimed. Such as property taxes, utility bills. But also things like maintaining the outside of the home. Like mowing the lawn and shoveling the walk. Can be included in valid moving expenses.
It may be confusing for the average person to understand exactly what expenses they can claim. Which is why they should hire and Edmonton bookkeeping company. Because they will know exactly what expenses they can use. So that people can end up making the best claim possible. To get the best tax benefits of claiming their moving expenses.