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Taxpayers may claim eligible moving expenses provided the move brings them at least 40km closer to a job, business location or post-secondary institution at which they begin full-time attendance.
The claim amount is limited to income from the new business, employment or taxable scholarships, fellowships, bursaries, prizes and research grants either in the year of move or the following year. For individuals who receive a full or partial reimbursement, the full amount of the moving expense can still be claimed as a deduction as long as the reimbursement amount is included in calculating income.
Eligible moving expenses include:
travel costs, which include reasonable amounts for meals and accommodations
storage costs for household items
costs for up to 15 days of temporary board and lodging near either residence
the cost of cancelling the lease or selling the old residence as a result of the move (legal and realtor fees)
transfer taxes or taxes upon registration of title to the new residence only if a former residence has been sold
Additional expenses for maintaining a vacant former residence such as mortgage interest, property taxes, insurance premiums, heat, power and utility expenses along with personal expenses to revise legal documents to reflect the new address are also deductible. The deductible amounts are limited to the lesser of actual costs or $5,000.
The simplified method may be used to calculate moving expenses and doesn't require any receipts to be submitted. This method includes a flat rate of $23/meal (to a maximum of $69/day) per person. A fixed rate is also used per kilometre of travel. The per kilometre rate for the province of Alberta is 47 cents for the 2020 year. The rate varies depending upon the province and may change from year to year. It is advised that you check current documentation before determining whether the simplified method would work best for you.