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

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.

Re: Relocation expenses
 

Pity.

Thanks for the prompt reply.

John

Re: Relocation expenses
 

I can second that.

Re: Relocation expenses
 

Not a pity for Canadian taxpayers.

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

Re: Relocation expenses
 

You need to wind your neck in.

Re: Relocation expenses
 

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

Re: Relocation expenses
 

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

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 :)

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:

Re: Relocation expenses
 

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.

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

Re: Relocation expenses
 

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.

Re: Relocation expenses
 

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

Re: Relocation expenses
 

@Aviator I think the relevant line in that link is "When you transfer an employee from one of your places of business to another" from my reading that does not include a non resident moving into the country to take up a new position at the company.

@Novocastrian I'll be receiving a fixed lump sum, whether it covers my expenses or not. So I'll probably be in a situation of the lump sum not covering the expenses anyway and after getting taxed on it I'll be out of pocket by a serious amount.

Not bitc**ng about it, that's the deal I've entered into and I'll deal with the shortfall out of my own pocket.

The fact I'll effectively be a single man for the first six months doesn't help my tax position either but hey swings and roundabouts.

Re: Relocation expenses
 

Hmm. That's something about which I'd like to see JonboyE's opinion. I mean you still have a wife (and perhaps dependent children). I just don't know if them being abroad makes a difference for your taxes.

Jon?

Re: Relocation expenses
 

1. You have to be a deemed or factual resident in order to claim it.
2. An employee who is employed by a Canadian company and they move an employee back to Canada or vice versa it applies. #1 would also apply to this.
2. Employees who have a job and live far away from work and move to be closer to that place of work within Canada or a Canadian resident moves to take up a new job.

An new immigrant would not fit this criteria. Plenty of new immigrants have looked at this and found it does not apply to them.

Not sure what you mean by effectively being single and how this will affect your tax position?

Re: Relocation expenses
 

I done it all myself,no help at all,and with only 4,000GBP saved which I used for my flight,and to set me up until I got paid.
Hard work,determination,and lots of overtime made it possible for me to come over,get setup,and bring my family,and dog over to Canada.

I never expected any hand outs or freebies though,and it has been easier than I expected it to be.

Re: Relocation expenses
 

This is correct. As long as they remain a family unit, if she has no income the OP can claim her personal amount. He can also claim for drpendent children if he has any. If she does have income this must be declared if they apply for child tax credit.

Re: Relocation expenses
 

Merci. J'ai penser exactement ça.

Re: Relocation expenses
 

Even though they'll never have been resident in Canada? and wont be resident for 6 months??

ok, that helps, thank you

John