If you’ve moved at least 40 kilometres closer to work or your business, claiming moving expenses in Canada might offer a substantial tax break. But this deduction comes with rules, restrictions, and a higher risk of CRA audits. In this video, I walk through what you can and can’t deduct — and what documentation you need in place before making a claim.
Video Transcript: Claiming moving expenses in Canada
If you move closer to work by 40 kilometers or more into a new place, you may be eligible to deduct various moving expenses. There’s quite an assortment of deductions that are available. I’m going to read from a list to give a sampling, just so you have a flavor of this. You may be able to deduct costs, including travel, meals, transportation of your belongings, lodging up to 15 days, lease cancellations, costs of selling former residences, including the legal fees and the real estate commissions, mortgage penalties, legal fees, taxes on the new residence, cost of utility hookups or disconnections, the change of address.
If the old house is vacant, we may be able to deduct some costs relating to the mortgage interest, taxes, insurance, utilities. Again, there are limits. There’s a host there, different exceptions, different requirements. But look into, for your own case, what may or may not be appropriate. It can be quite a deduction at the end of the day.
Also keep in mind these are one of the deduction items that are extremely frequently audited by Revenue Canada, so make sure you have your ducks in a row before making the claim.
I’m George Dube, saving the world from tax, one bow tie at a time®.
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Resources
For additional resources related to how to maximize tax deductions, see:
- 2025 tax season tips: How to save more this year
- Canada Revenue Agency: Can you claim moving expenses? interactive tool
- Claiming employment expenses in Canada
- Claiming medical expenses in Canada
More questions?
Still have questions? I want to help you Do wonderful things®, so please contact me today.
Remember – circumstances are unique! This information is summary in nature. Seek out advice from your tax advisor about your specific situation.
