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-   -   Relocation expenses (https://britishexpats.com/forum/canada-56/relocation-expenses-802678/)

jwtimmon Jul 12th 2013 12:07 am

Relocation expenses
 
Hi

I understand that as a newcomer non resident to Canada I cannot claim relocation expenses.

However if I move on my own, just me and a suitcase of clothes, work for at least 183 days, reside in rented accommodation and then relocate my family, goods, chattel etc do I qualify?

John

Ben W Bell Jul 12th 2013 12:14 am

Re: Relocation expenses
 
No because to claim them for tax purposes you have to move within Canada more than 40 miles specifically for work. You're relocating your family from another country.

jwtimmon Jul 12th 2013 12:22 am

Re: Relocation expenses
 
Pity.

Thanks for the prompt reply.

John

Tangram Jul 12th 2013 4:43 am

Re: Relocation expenses
 

Originally Posted by Ben W Bell (Post 10796560)
No because to claim them for tax purposes you have to move within Canada more than 40 miles specifically for work. You're relocating your family from another country.

I can second that.

Auld Yin Jul 12th 2013 8:19 am

Re: Relocation expenses
 

Originally Posted by jwtimmon (Post 10796572)
Pity.

Thanks for the prompt reply.

John

Not a pity for Canadian taxpayers.

jwtimmon Jul 13th 2013 12:03 am

Re: Relocation expenses
 
Sigh.

The fact I'll soon be a productive tax paying member of Canadian society seems to have been mislaid in your eagerness to utter a pithy little put down.

Did I miss the bit where tax planning was made illegal in Canada?

Or do you perhaps think that new immigrants should pay more tax that native Canadians, that we should not be allowed to avail of legal and ethical means of reducing our tax bill? If relocation expenses are allowable I will use them, if they are not I won't.

Pretty simple I would have thought.

Maybe I should ask for your permission on other tax deductions say child care expenses, or medical expenses. Or would that too be a "pity for Canadian taxpayers"

John

Auld Yin Jul 13th 2013 12:44 am

Re: Relocation expenses
 

Originally Posted by jwtimmon (Post 10798199)
Sigh.

The fact I'll soon be a productive tax paying member of Canadian society seems to have been mislaid in your eagerness to utter a pithy little put down.

Did I miss the bit where tax planning was made illegal in Canada?

Or do you perhaps think that new immigrants should pay more tax that native Canadians, that we should not be allowed to avail of legal and ethical means of reducing our tax bill? If relocation expenses are allowable I will use them, if they are not I won't.

Pretty simple I would have thought.

Maybe I should ask for your permission on other tax deductions say child care expenses, or medical expenses. Or would that too be a "pity for Canadian taxpayers"

John

You need to wind your neck in.

Novocastrian Jul 13th 2013 1:07 am

Re: Relocation expenses
 

Originally Posted by jwtimmon (Post 10798199)
Sigh.

The fact I'll soon be a productive tax paying member of Canadian society seems to have been mislaid in your eagerness to utter a pithy little put down.

Did I miss the bit where tax planning was made illegal in Canada?

Or do you perhaps think that new immigrants should pay more tax that native Canadians, that we should not be allowed to avail of legal and ethical means of reducing our tax bill? If relocation expenses are allowable I will use them, if they are not I won't.

Pretty simple I would have thought.

Maybe I should ask for your permission on other tax deductions say child care expenses, or medical expenses. Or would that too be a "pity for Canadian taxpayers"

John


Originally Posted by Auld Yin (Post 10798246)
You need to wind your neck in.

Actually I thought the OP's response was very reasonable.

Aviator Jul 13th 2013 5:11 am

Re: Relocation expenses
 

Originally Posted by jwtimmon (Post 10798199)
If relocation expenses are allowable I will use them, if they are not I won't.

For moving to Canada, they are only allowable for a factual or deemed resident. A new immigrant is neither.

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

Mad Jockette Jul 13th 2013 5:21 am

Re: Relocation expenses
 
relocation expenses can be a part of the recruitment package.

I had a relocation package included when I was offered and accepted my employment. Only problem it was included in my first month salary and a lot taken in tax (hey ho, part of life). It paid for half the shipment of our belongings.

it was also given on the proviso that if I left the employment within two years then I had to ay back a pro rate amount.

If I misread the OP, I apologise :)

BristolUK Jul 13th 2013 5:58 am

Re: Relocation expenses
 
I am all for people receiving entitlements.

But moving across the world 6 months ahead of the family, instead of all together, just so someone else contributes to the expenses sounds a little extreme.
:unsure:

Novocastrian Jul 13th 2013 6:07 am

Re: Relocation expenses
 

Originally Posted by Mad Jockette (Post 10798496)
relocation expenses can be a part of the recruitment package.

I had a relocation package included when I was offered and accepted my employment. Only problem it was included in my first month salary and a lot taken in tax (hey ho, part of life).

So did I. But none of that tax stuff. It was simply paid for me by the employer.

End of story.

But I suppose the Canadian tax-payer took a hit in the goolies. Although I can't quite see how.

jwtimmon Jul 13th 2013 6:28 am

Re: Relocation expenses
 
Agreed moving on my own for 6 months just to gain a tax advantage is probably excessive, but seeing as I will be moving over first anyway for at least 5 or 6 months if delaying the family by a couple of weeks or so means I reduce my tax liability for several thousand dollars then that's something I think is worth investigating.

And it's all moot anyway as you can't do that anyway.

Company are paying a lump sum as one off payment on first paycheck

This will be taxed at full income tax and if I could have used my relocation expenses I would have been looking for a rebate at year end.

Given the salary I'll be on I'll be lucky to retain 56%

John

Novocastrian Jul 13th 2013 6:42 am

Re: Relocation expenses
 

Originally Posted by jwtimmon (Post 10798548)
Agreed moving on my own for 6 months just to gain a tax advantage is probably excessive, but seeing as I will be moving over first anyway for at least 5 or 6 months if delaying the family by a couple of weeks or so means I reduce my tax liability for several thousand dollars then that's something I think is worth investigating.

And it's all moot anyway as you can't do that anyway.

Company are paying a lump sum as one off payment on first paycheck

This will be taxed at full income tax and if I could have used my relocation expenses I would have been looking for a rebate at year end.

Given the salary I'll be on I'll be lucky to retain 56%

John

As I said (I think) no harm in asking, but if your employer is going to show the expenses in your pay cheque, you'll need to deal with that on your first tax return.

Not good.

Aviator Jul 13th 2013 7:10 am

Re: Relocation expenses
 

Originally Posted by jwtimmon (Post 10798548)
Agreed moving on my own for 6 months just to gain a tax advantage is probably excessive, but seeing as I will be moving over first anyway for at least 5 or 6 months if delaying the family by a couple of weeks or so means I reduce my tax liability for several thousand dollars then that's something I think is worth investigating.

And it's all moot anyway as you can't do that anyway.

Company are paying a lump sum as one off payment on first paycheck

This will be taxed at full income tax and if I could have used my relocation expenses I would have been looking for a rebate at year end.

Given the salary I'll be on I'll be lucky to retain 56%

John

Some moving expenses are taxable some not.
http://www.cra-arc.gc.ca/E/pub/tg/t4...tml#P557_58074


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