Tiger_Quimpo

Are the costs associated with applying for PR and/or the costs associated with moving and settling in Canada (British Columbia in our case) from the UK relevant for our first Canadian Tax return i.e. are they deductible?

I've spoken with one accountant who tells me we'll have a Zero/Nil return, as we both (myself and my wife) only started working in January of 2012 - landed in Sept 2011. When I asked about the moving expenses he said he wasn't aware that we could claim these expenses as deductible. He later sent me info relating to moving expenses within Canada. That information did say 'Generally, your move must be from one place in Canada to another place in Canada.', but also goes on to talk about Moving to Canada scenarios for 'Deemed Residents'.

http://www.cra-arc.gc.ca/tx/ndvdls/t...19/mv-eng.html

It's not clear, but hey it's tax. It's not meant to be clear is it?

Any steer on this appreciated. I don't want to waste time on it, if it's a dead end.

Thanks.

London Mike

I don't think so, no. I asked my accountant the same question and he said no.

Tiger_Quimpo

Thanks Mike. Just wanted to check before I expended more effort on it.

mandymoochops

Someone else asked this a couple of weeks ago and our resident tax expert categorically stated 'No' lol.

Would be nice though eh!

Aviator

Absolutely no chance.

Tiger_Quimpo

Thanks all.

minimeeze

Not sure if I slipped through the net then, but my expenses were tax deductible (or should I say my accountant claimed them and no-one questioned it!)

Tiger_Quimpo

For every rule there's an exception. As I said, it's tax and it's taxing.
The whole reason I asked in the first place was because a family friend said, keep yer receipts - you can claim it. Just tonight asked him if he did claim and how that went over. Not surprised that someone else has an alternative view or experience.

Do the CRA folks take calls/queries or is that just the road to ruin or pot luck central?

el_richo

My wife paid no tax on hers but didn't put it toward any deductable either i don't think. Not sure how her company did it though but she just got a stonking cheque that we cashed and put toward the new car

R I C H

I called CRA several times during the process of selling a buisness, for some clarification regarding capital gains. Their attitude each time was 'we interpret and make judgment, we don't offer advice.'

JonboyE

As for calling the CRA it is hit and miss. Sometimes they can be very helpful and sometimes not. And you also have to remember that you are talking to front line customer service people and you can't expect them to know everything. If they know they don't have the answer you need then they will pass you on to someone who does. The problem comes when they think they know the answer, but don't.

For moving expenses I prefer to think of it that you can deduct them if you are a tax-resident in Canada both before and after the move. Hence "generally from one place in Canada to another." However, if you live in Canada and are posted overseas, and remain a Canadian tax-resident all the time you are overseas, then you could deduct moving expenses both going out and coming back.

The only exception I can think of is a full-time student moving to Canada to study. They can deduct moving expenses from certain taxable grants and bursaries - but most bursaries are not taxable in any case.

Not all tax returns are reviewed by the CRA. I believe there is a strong possibility that your return will be reviewed if you claim moving expenses because it is unusual - it is odd amounts and big occasional claims that stir the CRA's interest. However, sometimes it goes through. It is the tax audit lottery.

Tangram

Indeed. I didn't claim for the move over here but did claim for my move within Canada for new employment. The latter was pinged by CR but the large refund was paid.

Tiger_Quimpo

Thanks Tangram & JonBoyE for your replies.