# Moving Expenses questions



## Rico (Jan 27, 2011)

My wife and I moved in the 2010 tax year and I kept good records but I've been wondering a couple things.

Background info:


New location is ~480 km away
Wife moved June 19th, started new job June 21
She rented from friends from June 19 - July31 for $750 over that time.
I stayed back to finish school and moved Aug. 5
We rented out our house shortly thereafter as the market in our city dropped significantly.
New place rented Aug. 1 - present
Movers damaged a bunch of our stuff and we had about a $9000 insurance claim, we paid a $500 deductible in that process.
My wife made a few trips back and forth between June/Aug. to take back ultrafragile items, art, etc.

So, here's my questions:

1. From reading the guide on moving expenses, I should be able to claim the km and meals for the multiple trips my wife made (she took full car loads back with her each time). Can I claim "there and back" or just "back" if you know what I mean. 

2. Any thoughts on claiming the insurance deductible since it arose directly from the move?


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## OhGreatGuru (May 24, 2009)

_2. Any thoughts on claiming the insurance deductible since it arose directly from the move?_

You could ask CRA, but it seems unlikely. If you didn't have insurance, would you expect CRA to let you claim the whole $9000 loss? If you had a car accident on the way, would you expect them to accept the write-off of your car as a moving cost?


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## Rico (Jan 27, 2011)

So I just got off the phone with CRA (finally didn't have a long hold time) and both questions made for a lot of research on the agent's part (lol).

As for multiple trips, she said I could claim it but I'd best be ready to have a strong rationale for the multiple trips since we hired movers. (which I have but I smell an audit coming . . . no biggie).

Regarding the deductible - this one took awhile for the agent to figure out (suggesting it isn't "obvious"). Bottom line is if the insurance was purchased for the move (as extra insurance) the deductible would be claimable. Since it's under my existing home insurance policy, it isn't claimable (considered personal). I kind of thought it wouldn't be but who knows until you check?

It's funny how some tax rules work. For example, if you own a rental property that's far away, you can claim the km as rental expenses for going to do maintenance but not the accommodations while away to so so as the accommodations are considered personal.


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## Plugging Along (Jan 3, 2011)

Rico said:


> It's funny how some tax rules work. For example, if you own a rental property that's far away, you can claim the km as rental expenses for going to do maintenance but not the accommodations while away to so so as the accommodations are considered personal.


Not quite, even with rentals, if it is really far away, CRA still looks to see if the number of trips are reasonable and if you can do it a different way that would be more reasonable. 

We looked at trying to rent our vacation rental in another province and were told we could probably write a couple of our trips back and forth off, providing we were able to prove that they were required for income generation. However, they said if we can to drive back every weekend to show it, over a long period of time, this probably wouldn't work.


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## marina628 (Dec 14, 2010)

Are you saying if I owed a rental property in Florida , I can fly down once a year to check on things and write if off on my taxes as rental expense?


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## Rico (Jan 27, 2011)

From the CRA Rental Income guide:

*Line 9200 – Travel*
You might travel to collect rents, supervise repairs, and
manage your properties. To claim the expenses you incur,
you need to meet the same requirements discussed at
“Line 9281 – Motor vehicle expenses,” on page 13.
Travelling expenses include the cost of getting to your
rental property. Travelling expenses do not include board
and lodging, which we consider to be personal expenses.

*Line 9281 – Motor vehicle expenses*
You can deduct motor vehicle expenses in the following
circumstances:
&#56256;&#56452; If you own one rental property:
You can deduct reasonable motor vehicle expenses if you
meet all the following conditions:
*– you receive income from only one rental property that
is in the general area where you live;*
– you personally do part, or all, of the necessary repairs
and maintenance on the property; and
– you have motor vehicle expenses to transport tools and
materials to the rental property.
You cannot deduct motor vehicle expenses you incur to
collect rents. These are personal expenses.
&#56256;&#56452; If you own two or more rental properties:
In addition to the expenses listed above, you can deduct
reasonable motor vehicle expenses you incur to do any of
the following:
– collect rents;
– supervise repairs; and
– generally manage the properties.
This applies whether your rental properties are located in or
outside the general area where you live. However, your
rental properties have to be located in at least two different
sites away from your principal residence. The motor vehicle
expenses that we consider to be reasonable depend on the
circumstances of your situation.


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## Rico (Jan 27, 2011)

Plugging Along said:


> Not quite, even with rentals, if it is really far away, CRA still looks to see if the number of trips are reasonable and if you can do it a different way that would be more reasonable.
> 
> We looked at trying to rent our vacation rental in another province and were told we could probably write a couple of our trips back and forth off, providing we were able to prove that they were required for income generation. However, they said if we can to drive back every weekend to show it, over a long period of time, this probably wouldn't work.


Well, I was paraphrasing a bit - it's 2 or more properties. The main point I was making was that the board/lodging part is _personal_, even though the _travel_ is business related and can be claimed.


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## sprocket1200 (Aug 21, 2009)

marina628 said:


> Are you saying if I owed a rental property in Florida , I can fly down once a year to check on things and write if off on my taxes as rental expense?


Yes, of course. Or if you go there for a meeting. I am surprised that the accommodation isn't covered. I would have a meeting too and submit both...


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## Eclectic12 (Oct 20, 2010)

Rico said:


> So I just got off the phone with CRA (finally didn't have a long hold time) and both questions made for a lot of research on the agent's part (lol).
> 
> As for multiple trips, she said I could claim it but I'd best be ready to have a strong rationale for the multiple trips since we hired movers. (which I have but I smell an audit coming . . . no biggie).
> 
> [ ... ]


I'd recommend keeping good records and keep everything organised. My sister and her husband were conservative in their claims but were either audited for that piece.

They may have had bad timing but good records always help keep the stress out of the situation.


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