Posted on: 09-04-03 14:34:36
Hi,
I am about file taxes for the last year. I have one question.
When I moved here last year, I stayed in Hotel for 7 days. Later I moved to the apartment.
Can those expenses come under "Moving Expenses"?
Thanks
Moving expenses are allowed only if:
1. the move is, generally, within Canada. However, a person living outside Canada, BUT CONSIDERED TO BE A CANADIAN RESIDENT FOR TAX PURPOSES during stay outside Canada, may claim moving expenses as if the move had occurred in Canada.
2. in order to commence work at a new location (even if is for the same employer) (or for attending post secondary schhols), or for self employed people, to start a new business.
3. the new residence must be atleast forty kilometres closer to the new place of employemnt than the old residence.
4. the moving expenses can only be deducted from a taxpayer's net earnings at the new location. This means that someone who moves late in the year, and therefore has very little earned income at the new location, may be limited in the amount that can be deducted that year (though the eligible expenses that could not be deducted in the year of the move can be carried forward a MAXIMUM of one year)
In case you moved into Canada as a new landed immigrant, moving expenses are not deductable.
I shall be pleased to provide any more explanation if needed!
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Chandresh
Advice is free – lessons I charge for!!
Quote:
In case you moved into Canada as a new landed immigrant, moving expenses are not deductable.
That's exactly my case. I moved here from US. It took me some time to find the apatment. I spent around $800 or so for hotel and rental car.
Thanks for the info.
Quote:
I shall be pleased to provide any more explanation if needed!
I have one more question.
I opened $1000 Term Deposit in a bank and I got the "GIC and Term Deposit Statement" sometime early in this year.
But I didn't receive any T-5 from the bank.
Is the "GIC and Term Deposit Statement" same as T-5?
What's the minimum amount of interest you should earn to receive
the T-5?
Thank you.
On the onset, let me truely express, and I hope you will not mind my saying so, it appears from your postings that you are posing hypothetical situations rather than actual facts! And I would say it is a wonderful way of not only learning yourself, but let other members learn too, indirectly.
My understanding is that banks do not send any T5s for any one single account earning less than $50 as interest for that particular year. I have four different accounts, only two of which earn interest of more than $50 per year, and so I get T5 for only 2 of the four accounts.
Moreover, T5 is sent only for interest actually credited to your account - not for accrued interest, even if it is more than $50. So even if you made a deposit of $10,000 for a period for one year say on May 1, though the interest accrued by 31st December that year will most probably be more than $50 for the year, since the GIC will actually mature in the next year, T5 for the whole interest will be issued during the next year.
As a taxpayer, you have the option to include interest income based either on accrued basis or on cash basis (that is when you actually receive it!)
It is difficult to do it on accrual basis, but it is allowed.
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Chandresh
Advice is free – lessons I charge for!!
