Often, people move for business reasons, and then wonder if they can claim those moving expenses says Edmonton bookkeeping. This is an important thing to think about before they move. So that people can ensure that they are keeping all of the receipts that they incur.
While there are many different requirements that they have to satisfy in order to determine if they are eligible to claim their moving expenses. People should be asking their Edmonton bookkeeping company ahead of time.
So that they can understand if they are eligible. And then keep the receipts throughout their entire move. So that they can claim the maximum amount on their personal taxes.
Out of the several eligibility requirements, people must ensure that they are moving at least 40 km closer to their place of work. It does not matter if this is a current workplace, or if they are moving to a new place of work. The total distance closer must be 40 km. And not 40 km in total.
They also need to ensure that they are moving within Canada. Discounts only for domestic moves. And if they have come from another country into Canada, they are not eligible to claim these expenses.
They also need to ensure that they are not already getting reimbursed for their moving expenses. Such as if they get a promotion with their company. And the company pays for the moving expenses.
And finally, Canada’s revenue agency requires that in order to be eligible. People must have sold their homes before they moved. There is an exception to that, however. And as long as people can provide documentation proving that they tried to sell the home. If it is not yet sold, they will be able to claim these moving expenses.
Once people have satisfied these requirements, the next thing that they need to keep in mind is that there is a maximum amount that people can claim. This is related to their net income. And they should also keep in mind that they can carry their expenses forward into the next year if they choose.
It can then become a strategy on whether they are going to claim their moving expenses in the current year if they are going to claim some now and some in the next year. Or if they are going to push all of the expenses to the next year. Especially if they stand to make more money considerably than they did in the past year.
This is not limited to people who are moving strictly for work. But students who are moving so that they can go to a university they were accepted into. Can also claim their moving expenses. And the maximum amount that they can claim will be related to any Government grants that they may be receiving.
Therefore, the sooner a person can understand if they qualify to claim their moving expenses. The sooner they will be able to remember to keep their receipts. Then hire and Edmonton bookkeeping company to help them claim the maximum amount possible.
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If people have moved in the past year, Edmonton bookkeeping says one of the most common questions they ask. Is if they are eligible to claim their moving expenses on their personal taxes.
This is extremely important because the more a person can minimize the taxes they owe the government at the end of the year. The more money they will be able to keep in their own pocket.
Since the maximum amount that a person can claim in moving expenses is dependent on their income. A person should keep all receipts related to moving. Because they might not be aware of how much they are able to claim until the move is done.
In fact, there are a lot of moving expenses that many people are not aware of. That can help ensure that they are able to claim the maximum amount that they are eligible to receive.
For example, people may not realize that there is incidental costs that are claimable. Such as utility disconnection costs and reconnection costs. Part of the incidental costs includes the cost of having to get new documentation with their new address on it. Including drivers licenses, and provincial identification cards.
And while many people understand that they can claim the amount it costs them to hire a moving company. They may not realize that if they have to store their belongings. In case their home is not ready to take possession when that truck arrives. The cost of the storage facility is also claimable as a moving expense.
Even if they have to pay for insurance, and a lease on the storage facility. These are counted as moving expenses that they are able to claim.
Even when it comes to driving from their old residents to their new home. Many people are aware that they can claim the cost of gas, meals as well as accommodation. But they might not realize that they will be able to claim things like increased insurance for their trip. Or paying for tires if they need to replace any on the journey says Edmonton bookkeeping.
While these things can be very complex. Canada revenue agency does have an equation that allows for people to calculate moving costs much more simply. This equation is seventeen dollars per person per day, with fifty-one dollars in meals per day. And then forty-eight point five cents per kilometers.
However, people need to keep in mind that even if they are using a simplified method in calculating their moving expenses. They still need to ensure that they have enough receipts that can prove that they have spent at least that much. In case they get audited by the Canada revenue agency.
Regardless of which method they choose, it may be most beneficial for people to hire and Edmonton bookkeeping company. So that they can ensure that they are claiming as much as they possibly can on their personal taxes. So that they can minimize what they owe the government at the end of the year.