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Working through my 2009 tax return right now. I am eligible for the moving expenses and am wondering about a couple things.

Here's my story first:
- Renting apartment, had to notify landlords 2 months in advance
- Moved within 3 weeks of notifying landlords
- Ended up paying an extra 1.5 months of rent after we moved
- Moved greater than 40km with wife and infant using u-Haul and personal vehicle.
- In-laws helped us move with their own personal vehicle as well.
- Stored possessions in storage locker for 2 months
- Lived with in-laws temporarily for 2 months
- During those 2 months, bought a house and moved in.


I've already called CRA to confirm a few eligible expenses. For instance
A) we can claim the storage locker costs for the 2 months while living with in-laws.
B) There's no 'minimum age' for claiming meal expenses (simplified form); therefore, I am able to claim $51 per day for my daughter who was 10 days old during the move (sounds crazy, but CRA said there's nothing stopping me from claiming this amount)
C) We can't claim the gas or meals of my in-laws as they are not 'members' of the household which is moving.


My questions are:

(You are able to claim 15 days temporary accommodation and meal expenses.)
1) Can we claim anything for temporary accommodation even though we lived with my in-laws for free (although I'm sure we incurred miscellaneous expenses during that time)?

2) Can we claim meals for the 15 days after the move as we were living temporarily with my in-laws using the simplified method, even though we mostly ate with them? (if that's the case, 15 days x 3 people x $51 = $2,295, or about a $600 refund on my return!)

3) Can I claim the 1.5 months of rent I paid after we moved from the original location?

4) How do I claim the gas used in the U-Haul? For the personal vehicle, we used the simplified method of $0.54/km which is included in the "travel costs" (line 2 T1-M). Do we need receipts for U-Haul gas, or is there a simplified method? Does that amount get added to the "Transportation and storage costs" (line 1 T1-M)?

5) Is there any way to claim the legal fees for the new house purchase? We were told by CRA that you can only claim this if you sold your old house to move to the new house. (we rented previously). Can these legal fees be claimed anywhere else?


I appreciate you reading this long post! Thanks a bunch of any help you can provide!
 

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A few points of clarification before we delve too far into your question.

Was the house purchased in 2009? If so, do you have a statement of adjustments provided by the lawyer who dealt with the purchase of the home?

My experience is, any time a taxpayer claims both property taxes and rent in the same year, Canada Revenue Agency WILL ask for documented proof. I've filed a number of returns in which people have been in your situation, and they always want the information.

The statement of adjustments will have the portion of the property tax paid during the year for the previous owner as well as your portion of that property tax.

If you have this information, you can claim both the rental expense and the property tax expense on your ON479 (assuming of course that you live in Ontario)

One of my major questions is, what was your taxable income looking like? Depending on how much federal and provincial tax you have to pay, it may very well not be worth the trouble.

Much like the claiming of property taxes and rent, I find that quite often CRA will reassess for moving expenses.

Your primary concern is going to be making sure that you have VERY complete documentation for any claims that you do make.

Also consider that your moving expenses cannot be more than your actual income for the year, even if you dipped in to savings to pay for the move.

Hope this helps.
 

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My questions are:

4) How do I claim the gas used in the U-Haul? For the personal vehicle, we used the simplified method of $0.54/km which is included in the "travel costs" (line 2 T1-M). Do we need receipts for U-Haul gas, or is there a simplified method? Does that amount get added to the "Transportation and storage costs" (line 1 T1-M)?
You can't claim the $0.54/km mileage rate for a rented vehicle. That rate is a blend of average fuel, maintenance, and ownership costs, and is similar to Treasury Board mileage rates for public servants using their personal vehicles on business travel. You can only claim the direct fuel costs plus the rental cost.
 

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Discussion Starter #4
jacobv,

Thanks for the reply. House was purchased in 2009, in Ontario. I should have the statement of adjustment at home, I'll check tonight and look into what you suggest to see if it is worth it or not.


OhGreatGuru,

Thanks for the reply. I kept my gas receipts separate for the car and for the U-Haul, so I'll do the simplified method for the car, and claim the specific gas receipts for the U-Haul.


One more thing, can I claim my km's, and the gas for the entire duration of the move, including picking up the U-Haul (nearest pickup location was 30km from my old house), and dropping off the U-Haul (nearest dropoff to new house was also about 30km). This would also include my personal car km's to drive my father-in-law to pickup the truck and back, and to drive to the dropoff location and drive back home with my father-in-law.

Also, although minor, can you claim km's for small detours, like driving to a restaurant to eat, driving to a gas station not on the main 'travel route'? Or can you only claim Point A to Point B travel by the most commonly traveled route?

Thanks!

Dave
 

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One more thing, can I claim my km's, and the gas for the entire duration of the move, including picking up the U-Haul (nearest pickup location was 30km from my old house), and dropping off the U-Haul (nearest dropoff to new house was also about 30km). This would also include my personal car km's to drive my father-in-law to pickup the truck and back, and to drive to the dropoff location and drive back home with my father-in-law.

Also, although minor, can you claim km's for small detours, like driving to a restaurant to eat, driving to a gas station not on the main 'travel route'? Or can you only claim Point A to Point B travel by the most commonly traveled route?


I don't know - suggest you call CRA. it is not clear from any of their on-line publications that I can see. But I suspect it would be based on the actual re-location distance - they have mileage charts they can use to check for excessive claims. Otherwise could be too open to abuse.

5) Is there any way to claim the legal fees for the new house purchase? We were told by CRA that you can only claim this if you sold your old house to move to the new house. (we rented previously). Can these legal fees be claimed anywhere else?

What part of "No"didn't you understand? CRA's answer is consistent with what it says on their Form T1-M. Legal fees are only payable if, as a consequence of your move, you had to sell a home and replace it with another. You weren't an owner before. You were a renter. Buying instead of renting at your new place of work was your decision, not forced on you by the move.
 

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Discussion Starter #6
To aid others who come upon this thread, this is how CRA interpreted my questions when I called them:


1) Can we claim anything for temporary accommodation even though we lived with my in-laws for free (although I'm sure we incurred miscellaneous expenses during that time)?

Simply, no. Since we stayed 'rent free', we can't claim anything.


2) Can we claim meals for the 15 days after the move as we were living temporarily with my in-laws using the simplified method, even though we mostly ate with them? (if that's the case, 15 days x 3 people x $51 = $2,295, or about a $600 refund on my return!)

Technically, yes, you can claim it all. However, most moving expenses are reviewed and this would be highly suspect. CRA said to modify the equation (and document it) to reflect how you spent your money during those 15 days (i.e., maybe just one meal per day on average, not 3, were incurred while living with in-laws, the rest were eaten with inlaws at their house)


3) Can I claim the 1.5 months of rent I paid after we moved from the original location?

Yes.


4) How do I claim the gas used in the U-Haul? For the personal vehicle, we used the simplified method of $0.54/km which is included in the "travel costs" (line 2 T1-M). Do we need receipts for U-Haul gas, or is there a simplified method? Does that amount get added to the "Transportation and storage costs" (line 1 T1-M)?

The gas expenses for the U-Haul are calculated using the same simplified method as your own personal car. Do not include this amount on line 1 (Transportation and Storage Costs), but include it on Line 2 (Travel Costs). Document how you calculated the values if/when the document is reviewed.


5) Is there any way to claim the legal fees for the new house purchase? We were told by CRA that you can only claim this if you sold your old house to move to the new house. (we rented previously). Can these legal fees be claimed anywhere else?

I didn't ask this, but as was stated earlier in this forum, no.



On a side note, the question I brought up about the total number of KM's I can claim (either point A to point B, -or- pickup/dropoff of U-haul distances): I was told by CRA that the extra KM's incurred on my own personal vehicle and the U-Haul are eligible as they were necessary to facilitate the move. Just document how this was calculated if/when it is reviewed.


Hope this helps.
 
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