Prepared hy the Institute of
4 Chartered Accountants of
19 British Columbia

“Moving in the line of duty
“| is:'a costly business and,
4) fortunately, the government
| realizes this.

x,

sTherefore, it allows for a
itax deduction—with certain
astrings attached—if you
move because of a change in
your job situation.

ies
a

The deduction also applies
to a post-secondary student
who moves to get a job or
start a business ar to enter
university or college.

But it should be pointed
out that if moving expenses
are paid by your company or
nif you are reimbursed for
them, you cannot claim
a them as a deduction.

It's important to note that
a deduction for moving
expenses may be claimed

only if your new residence is
at least 25 miles closer to
your place of employment,
business or education.

For example:

Your job site is changed to
a location 44 miles from
where you live. To save
travelling time, you move to
a home 18 miles from the
site.

Your moving cxpenses
would then be deductible
because 44 miles minus 18
miles equals 26 miles. But if
your new home is 20 miles
away from the job, your
expenses wouldn't be
deductible because 44 miles
minus 20 miles equals 24
miles.

And remember, moving
expenses are deductible only
to the extent of your
business or employment
income at the new location.
Or, in the case of a student,
to the amount of any

HEADING FOR NANAIMO, this ferry makes a pleasant backdrop to thot

You may be able to clai

scholarship, fellowship,
bursary, prize or research
grant included in his income.

Let's take
examples:

two basic

(a) Mr. Walter takes a new
job at a new location. He
moves 200 miles at a cost of
$1,000. His carnings the year
he moved totalled $6,000 but
only $600 of this is carned at
the new location.

Therefore he must deduct
only $600 of the moving
expenses from his income
and deduct the remaining
$400 the following ycar.

But if Mr. Waltcr had
moved to continue working
for the same company and
his employer had paid $700
for the moving, he would be
entitled to deduct only $300.

(b) Dr. Wilson is a self-
employed physician who
moves to sect up a practice in
a town 300 miles away. His

ow é

moving expenses were
$1,800. His practice earned
$2,600 after he moved and
he had expenses of $1,100.

Dr. Wilson could claim up
to $1,500 in moving expenses
in the year of the move and
the remaining $300 could be
claimed against his income
carned in that location in the
following ycar.

The tax deductions are

allowed only for basically

reasonable amounts laid out
for moving yourself,
houschold members and
houschold.cffects from one
place to another.

Eligible moving cxpenses
include:
®Travelling costs, including

meals and lodging:

Transportation and storage
costs of houschold effects,
such as packing, hauling, in-
transit’ storage and - in-
surance;

who live oni the North Shore past Horseshoe Bay. (Terry Peters photo)

.

The cost of up to 15 days’
temporary board and
lodging near your former or
new home for yourself and
members of your family;

eThe cost of cancelling an
unexpired lease on your
former home, not including
rental payment for any
period in which you were in
residence;

The cost of selling your
home, including advertising,
notarial fees, legal fees and
real estate commissions;

The cost of legal services
and transfcr taxes incurred
in buying a new home if the
old home was sold because
of the move.

Incligible moving expenses
include:

©The cost of any work done
to make the home more
saleable;

0 ite eS

moving expenses

eA mortgage penalty if the
mortgage is paid off before
maturity;

*Any loss incurred in the
sale of your home.

Another tip: If you're
planning to move when you
retire, it would be wise to
organize your affairs so you
can move to your retirement
location to take a job a few
years before your actual

tirement, thus becoming
ehipible for moving expense
deductions.

Finally, to make a moving
expense claim you should
get form TIM andthe
pamphlet “Moving Ex-
penses” from your local tax
office.

And remember t keep
receipts, all documents
pertaining to the moving
expenses, and a record of
your gasoline expenses if you
move by car, for scrutiny by
the taxman, ‘