Save taxes on your moving day

Are you moving to a new place for your work? Beyond all the work and expense in moving to a new location, there is one good point is that you are entitled to write off taxes few moving expenses.

Write off tax for few moving expenses

To claim the moving expenses, one must have an eligible relocation. The Income Tax Act refers it, as the new work location. If the distance from the old residential location to the new work location is more than 40km than the distance between your new residence and the work location, then you are entitled to the write off.

‘New work location’ – vague term

There is no proper definition of a new work location. The new work location will not constitute if the taxpayer is made to perform a new responsibility at the same location for the same employee. In 2010, when a taxpayer moved to a new location due to a promotion from part time work to full time employee for the same employee in the same place was awarded to claim the moving expenses. But in a recent case, a taxpayer who got promoted to managerial responsibility decided to move to a nearby location due to his job timing and was permitted to claim the moving expenses.

Source: http://business.financialpost.com/2013/11/12/tax-expert-when-does-a-job-change-make-moving-expenses-tax-deductible/

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