The taxpayer was not required by her employer to divide her time between Montreal and Quebec City. The judge therefore concluded that the $8,770 in cleaning and repair costs were not valid moving expenses as they were incurred “only to maintain the lifestyle that she had in her Montreal condo … these expenses are incidental to the move.”Īs for the temporary living expenses the taxpayer incurred for lodging and meals, the Tax Act is very strict and states that such expenses are deductible for a maximum of 15 days. While the list of eligible moving expenses contained in the legislation is not necessarily exhaustive, the judge quoted prior jurisprudence that found that for moving expenses to be deductible, those expenses “must pertain directly to a move and cannot be incidental expenses.” While there was no doubt that the taxpayer paid her moving expenses as the result of an eligible move, the only issue was the acceptability of the various expenses she claimed. The taxpayer objected and the matter went to Tax Court. It limited her claim for meals and lodging to 15 days, allowing $25/day ($375) for lodging and $51/day ($765) for meals.
The Canada Revenue Agency allowed some of the taxpayer’s moving costs, including: the cost of her mover ($1,702), travel ($131), hook-up of utilities ($268), notary public fees ($1,845) and land transfer taxes ($2,000). The taxpayer testified that she had to incur these expenses “to duplicate the quality of life she had in her Montreal condo.” Those expenses included: washing the condo, installing a washer/dryer, purchasing and installing light fixtures, laying ceramic in the kitchen, and purchasing an air conditioning unit.
In July 2015, the taxpayer purchased and moved into a condo in Quebec City where she incurred $8,770 in expenses for cleaning and repairs. The taxpayer therefore deducted $25 per day for lodging (total of $1,275) as well as $51 per day for food (total of $2,601) using the simplified calculation method described above.
In April 2015, the taxpayer was transferred to Quebec City and from April through June 2015, the taxpayer regularly made Quebec City-Montreal round trips because she still owned her Montreal condo.ĭuring these three months, the taxpayer incurred temporary living expenses while staying with friends in Quebec City for a total of 51 days, at a cost of $25 per night. Article contentįor more than ten years, the taxpayer worked in Montreal, where she owned a condo. This advertisement has not loaded yet, but your article continues below.
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