The Canada Revenue Agency has issued guidance to clarify when moving expenses can be offset against tax bills.
The Canada Revenue Agency has issued guidance to clarify when moving expenses can be offset against tax bills. For example moving home in order to take up a new job or work location may be a deductible expense, however moving on renewal of an existing contract under the same terms is almost certainly not. There is also an example in which an employer moves an employee to another location and the employee moves home from a rented property. He is not allowed to terminate the lease early and continues to pay it while also paying for a home in his new location. The rules would have allowed a deductible expense if he had cancelled the lease but not if he continued to pay the rent. The technical interpretations of the rules will perhaps prompt buyers to seek advice from an accountant as a layperson’s view of what is meant may differ from that of the CRA. Read the full story.