Let Canadian Taxman or your Employer pay your Moving Costs
Being a Canadian Professional Real Estate Investor, you need to educate themselves about Canadian taxes. We pay taxes from the day we are born till our death. Majority of Canadian Professional Real Estate Investors do not pay attention to the taxes. Canadian taxes can be two way street. We also need to learn how to claim all our eligible expenses when we move?
This article can save Canadian Professional Real Estate Investor thousands of dollars provided they utilize the guidelines based upon Canadian Revenue Agency.
When a Canadian family or individual moved at least 40km to be closer to a new job, to run a business, or to attend a post-secondary educational institute full time, then you may deduct moving expenses, up to the amount you earn at the new location, or up to the amount of award or scholarship income received in the year. You may carry excess expenses forward to be offset from income earned at the new location in the next year.
Canadian taxes can be quite complex. Having a experienced Chartered Accountant means you pay what you need to pay, not a penny more says Navtaj Chandhoke, founder of World Wealth Builders, a Canadian Real Estate investors education and mentoring center serving Canadians since 1993.
Many costs are deductible as moving expenses, including:Transportation and storage costs for household effects.Travel, including vehicle costs and reasonable costs for meals and accommodations in the course of moving the taxpayer and members of the tax payers household from the old residence to the new residence.
Costs of canceling a lease for the old residence.
Real estate commission, advertising, legal and other costs re selling the old residence
Legal fees re the purchase of a new home, and any tax, fee or duty (other than GST or value-added tax) imposed on the transfer or registration of title to the new residence.
Costs re maintaining the old residence, up to a maximum of $5,000, while the old residence is either vacant, or not occupied by any person who ordinarily resided with the taxpayer at the old residence immediately before the move, and while the old residence is not rented by the taxpayer to any other person. These costs are deductible as long as reasonable efforts are made to sell the old residence.
Change of address costs, such as replacement of drivers' licenses, non-commercial vehicle permits, and costs of connecting or disconnecting utilities.
Note that if your employer has reimbursed any moving costs, then the moving costs must be reduced by the amount received, unless the reimbursed amount is included as income elsewhere on your tax return.
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