24 - Friday, March 23, 1990 - North Shore News

We have all the
asupplies you'll need.

~interlocking paving stones

4 —paving sealer

a
sa Vi n gs —seeds and fertilizers
ARE YOU about to change jobs?
Then the Income Tax Act may
have some lucrative benefits for

. you.
. The basic rule is that moving -§
expenses are tax-deductible if you

wa—clay pots and planters

@ Att Werk Conditionally Guaranteed
© Quality Workmtanskip

© Quality Praduets

© Theol Wixdew R

44 —gardening tools
fam —topsoil, bark mulch

are moving within Canada to take
up a new job (or start a business or
attend university full time) and
your new residence is at least 40
kilometres closer than your former
residence to your new work,
business or school.

If these criteria are met, you
have the right to deduct travelling
costs, including reasonable
amounts for meals and lodging for
you and your family; transporta-
tion and storage costs for house-
hold goods; and the cost of up to
15 days of temporary board and
lodging near either residence.

The principle is that the expenses
were necessary for you to earn in-
come — so a hedge in the case of a
student is that the expenses can on-
ly be deducted from taxable bur-
saries, scholarships, research
grants or income from a part-time
job.

These things are well known, but
some of the items that are also
deductible may surprise you. These
include:

* The cost of cancelling a lease
for your old residence.

* Advertising costs for selling
your home.

© Legal fees on the sale of the
oid residence.

© Mortgage discharge fees.

® Real estate commissions. (This
is obviously a big item, but few
people know about it.)

© Legal fees on the purchase of
your new residence, as well as any
land transfer tax paid.

If you are reimbursed by your
employer for these costs, they are
not deductible. Nor do you have to
include the amount in income as 2
taxable benefit.

If you are reimbursed for part of
these expenses, the reimbursement
should be included in income, but
you deduct the expenses you claim.

Any moving expenses, not men-
tioned above are generally not
deductible. However, any reim-
bursements for “reasonable mov-
ing expenses’’ that are not deduc-
tible are normally not taxable pro-
viding they have ‘“‘no enduring
value.”

Such items include the cost of
maintaining an empty house at the
old or new location and a loss on
your old house, if you are required
by your employer to move to
enother locality.

The big advantage is that any
reimbursement you receive can be
applied to these non-deductible
expenses. This means that the
deductible items would be fully
deductible — that is, not reduced
by the reimbursement.

There is one final tax advantage.
Any reasonable moving expenses
which pertain to the sale of the old
house that you cannot or do not
deduct can still be used to reduce
the capital gain on the residence (in
cases where it is not eligible for the
principal residence exemption).

Moneycare is general financial
advice by Canada’s chartered ac-
countants.

PaRnNOPAacrion

Protect Your Investment

Eliminate Painting & Exterlor Maintenance

@ - Reduce Your Exergy Cests
- Dustab¥s Over Any Surface

fa NORTH SHORE VANCOUVER ;
: ees eae, ANE 3043 KONGSWAY i
we a PN BT PE Tene Las

@ GST HOUSING
REBATE ON SALES OF
NEW HOMES.

The proposed GST* will
replace the current Federal
Sales Tax, which now adds

more than 4% to the price of

new homes. The GST Hous-
ing Rebate of 2.5% on new
homes under $350,000 wili
reduce the 7% GST to 4.5%,
about the same amount of
sales tax as now.

@ 95% of all new home
buyers will qualify for a
GST Hoausing Rebate
which wiii be applied at
time of purchase.

*The GST legislation is

currently being considered
by Parliament.

Cali the GST Info Line toll-free now for the
informative pamphlet: Information on Housing.
i 800 267-6620 9 a.m.—5 p.m. Mon_Fri.

Telecommunications device for the hearing impaired: 1 800 267-6650

Canada’s GST. Information you should know.

aw Oeparntment of Finance —- Ministére des Finances
Ca Canad.

nada nada

Serving the North Shore for I! years.
Deerwood Garden & Landscape Supplies
825 W. Ist Street, N. Van.

987-1221

Call us and compare for sales and service.

Goods

and

Services

Tax = NO GST ON SALES OF
EXISTING HOMES.

The proposed GST also in-
cludes the following features:
- Information ® NO GST charged on
on residential rents of one

month or longer.

@ NO GST charged on
eondominium fees.

@ NO GST charged on
students’ and seniors’
residences.

@ NO GST charged on
loans, mortgages or home
insurance policies.

Housing

508

Canada