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I know I can claim moving expenses if I move because of a new job. But does the sequence of events matter?

While I'm doing interviews, I'd like to sell my house and buy my new house in the new city. It is possible that not all those things will be in the correct sequence (1. new job signing, 2. sell old house, 3. buy new house).

Does the order of events matter? Perhaps none of it matters as long as it's all done inside the same calendar year? (I'm hoping this is the case.)

Any relevant information on this would be appreciated.

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1 Answer 1

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To be able to claim moving expenses in Canada, your new home must be at least 40 km closer to the new place of work than your old home.

CRA spells out the criteria and includes a nice quiz here: Can you claim moving expenses?

They don't specifically state that the order matters, so I take it to mean that the CRA just needs to consider that the move was reasonable. That is, if you are moving for a specific job, the order does not matter. But you could, for example, not move from Alberta to New Brunswick, then start your job search, and then take a job three months later.

In other words, you must move for a specific job; otherwise, you aren't moving to be closer to your place of employment. You don't necessarily need to have a signed job offer in hand, but you must have been verbally offered the job.

Remember to keep your receipts, invoices, and supporting documentation.

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Thanks for the answer. I also called the CRA and spoke to an agent. He mentioned that on the form "T1-M Moving Expenses Deduction" there are two important fields : Date of Move & Start Date of new job. He mentioned that it doesn't matter which one comes first as long as they are not too far apart. Also, they will verify your start date by calling your new employer. –  camilos Feb 28 at 20:19

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