If people end up making the assumption that they are not eligible to claim their moving expenses says Edmonton bookkeeping. Because they are not moving for work purposes. Might be missing out on great tax benefits.
Even if people are not moving expressly for work. They may be entitled to claiming their moving expenses on their personal taxes. As long as they meet the requirements set out by the Canada revenue agency. They can use those expenses to help minimize their taxes.
If people are moving a minimum of 40 km closer to their work. This is going to meet the first eligibility requirements. This does not mean 40 km in total. But that it is actually 40 km in the direction of their work. To meet this requirement.
They also need to ensure that they are moving domestically. That it is from one Canadian address to another. If people are moving, they need to ensure that they are not getting reimbursed by another source. In order to be able to claim those expenses on their taxes.
And finally, if they have met all of these eligibility requirements. They also need to ensure that they have sold their residence. If they have owned it. Although Canada revenue agency will grant exceptions if people can provide proof that they have tried selling their home before moving.
As long as people have met these requirements. They are able to claim their moving expenses on their personal taxes. To a maximum amount.
This maximum amount is limited to their net income in that year. Therefore, if people have not worked that full year. It may be advantageous for them to claim those moving expenses in the next year. Because Canada revenue agency allows people to carry forward their moving expenses one year.
In fact, by consulting with the experts at Edmonton bookkeeping. Can help ensure that people are taking advantage of this. By either claiming all of their moving expenses in the best year possible. If they know that they are going to be reporting more income in the next year.
Or, they can claim mixture. Some expenses in the current year. And the rest in the following year. In order to ensure that they can claim as many expenses as possible.
Even students who are moving in order to be closer to their secondary school of choice. Are able to claim their moving expenses. Also limited if they are receiving government grants.
The next thing that a person needs to do, ensures that they have kept copies of all of their receipts. So that they can use as many valid moving expenses as possible.
Prior to move. People might find it beneficial to find a program that they can download on their phone. To scan all of their receipts into. So that they do not have to keep track of all of the paper copies of receipts. Because while the Canada revenue agency requires copies of the receipts. Copies are good enough, they do not necessarily need to keep the physical copies.
Therefore, they can send all the files to their Edmonton bookkeeping company. To help them figure out how to calculate the best expenses that they can claim on their personal taxes.
How Can We Help You Find Edmonton Bookkeeping?
If people would like to claim their moving expenses on their personal taxes, hiring and Edmonton bookkeeping company is the first step that they should take. Because it can be a complex issue. And people might end up missing expenses that they could claim. Simply because they are unaware of all of the expenses that are considered valid.
The best way to do this. Is to ensure that people are keeping all receipts or all copies of their receipts from their move. What they should avoid doing. Is thinking that certain expenses will be valid. And then throwing away their receipt.
The reason why is because there are a significant number of expenses that can be considered valid. That many people might not be aware of. Such as utility disconnections and connections. As well as the cost of obtaining new identification including a driver’s license with their new address.
Therefore, by keeping every single expense that they incur. Can help ensure that their Edmonton bookkeeping company is utilizing as many valid expenses as possible.
Other expenses that people might not be aware of include the cost of hiring a real estate broker. If they were unable to sell their residence before they moved.
This means the cost of the real estate brokers’ commission. As well as all legal and registration fees associated with selling the home.
Even the maintenance costs associated with maintaining their residence until it sells. Our considered valid moving expenses. And not only does this include property taxes and utility bills. But it also includes things like hiring a landscaper to mow the lawn. Or shall the sidewalk before the property actually does sell.
They can use travel expenses such as insurance, new tires, and oil changes. In addition to the well-known gas, meals, and accommodations. That many people are aware of as valid expenses.
However, some people might opt for using the Canada revenue agency’s simplified method of calculating moving expenses. Which is seventeen dollars per person per day for the length of the movie? Plus fifty-one dollars per day on a meal allowance. As well as charging forty-eight point five cents per kilometer for the entire length of the movie.
Edmonton bookkeeping cautions people who are using this simplified method. That they keep copies of their receipts as well. Because even if they have used the simplified method. They need to be able to show proof that they incurred those costs. By showing their receipts if Canada revenue agency asks.
Whether they use the simplified method. Or hire and Edmonton bookkeeping company to help them figure out what expenses they can use. The same thing is necessary. People keeping a copy of all of their receipts. So that they can end up getting the best tax benefits personally.
More expenses they can claim on their personal tax return. The more taxes they are going to be able to save. Which is why it is important that they are aware of as many expenses as they can claim as possible. And if they are having trouble remembering. Hiring and Edmonton bookkeeping company help organize it for them.