Please Note: This article deals with allowable moving expense deductions, as regards Canadian tax law.
You can deduct eligible moving expenses from employment or self-employment income you earn at your new location if you move and establish a new home to be employed or carry on a business. You can also deduct moving expenses from award income if you move to attend courses as a full-time student at a college, university, or other institution offering postsecondary education.
You're considered a full-time student if you regularly attend a college, university or other educational institution in a postsecondary level and you're taking at least 60% of the usual course load for the program. You're not considered a full-time student if - you're only taking a few evening courses, you're taking correspondence courses, or you're taking less than 60% of the usual course load for the program.
Your new home must be at least 40 km [by the shortest usual public route] closer to the new place of work or educational institution. You must establish your new home is the place where you ordinarily reside. For example, you have established a new home if you have sold or rented [or advertised for sale or rent] your old home. Generally, your move must be from one place in Canada to another place in Canada.
Eligible moving expenses include:
accommodation and meals for up to 15 days for you and the members of your household
traveling expenses, including vehicle expenses
transportation and storage costs, including packing, storage, and insurance
the cost of canceling the lease for your old residence, [except any rental payment for the period during which you occupied the residence]
legal fees for the purchase of the new residence, as well as any taxes paid [other then GST/HST or property taxes] for the transfer or registration of title to the new residence
the cost of selling your old residence, including advertising, notary public and legal fees, real estate commissions, and mortgage penalties if the mortgage was paid off before maturity
the cost of changing your address and legal documents, replacing drivers licenses and noncommercial vehicle permits, and utility hookups and disconnections
Expenses which are NOT deductible for moving include:
expenses for any work done to make your home more salable
any lost value from the sale of your home
any expenses related to house hunting trips before your move
any expenses for job hunting
any expenses to clean or repair your rented residence to meet the landlord's standards
any mail-forwarding expenses
any costs for transformers or adapters for your household appliances
any costs incurred while delaying the sale of your home for investment purposes, or until the real estate market improved
As always when dealing with the government, be certain to keep receipts and any other documents regarding or supporting your claim.
Here are some of the Canadian Government web site pages which are applicable:
