Court backs CRA in rejecting Montreal couple's $54,000 moving expense claim

financialpost.com:

Summer is a popular time for Canadians to move, especially for families with kids who hope to have their children begin the academic year in their new school by the beginning of September. For eligible individuals, the costs of moving can be significantly defrayed by claiming a tax deduction for your moving expenses, but only if you meet certain conditions.

A recent case dealt with a couple’s moving expenses and whether they were tax deductible, but before jumping into the details of the case, let’s begin with a quick refresher of the moving expense rules.

Under the Income Tax Act, you can write off your moving expenses if you moved for work, to run a business or to be a full-time student. The expenses can be deducted from the employment or self-employment income you earned at your new work location. To qualify, your new home must be at least 40 kilometres closer to your new work or school.

Assuming you qualify, you can claim reasonable moving expenses that you paid for moving yourself, your family, as well as any household items. Eligible moving expenses include the costs of packing, hauling, movers, in-transit storage and insurance for your household items, as well as travel expenses.

Travel expenses can include: motor vehicle expenses, meals and overnight accommodation to transport you and your family to your new home. Temporary living expenses for up to a maximum of 15 days for meals, and temporary lodging near the old, as well as the new home, are also tax deductible.

Aside from these obvious expenses associated with the physical move, eligible expenses can also include various ancillary costs such as the cost of cancelling the lease for your old residence as well as other incidental costs related to your move, such