Quick question. I moved to the US in July 2008 and became resident for tax purposes then. I moved back to Canada in July 2010 to take on a new job. My understanding is that moving expenses can only be deducted for a move within Canada. This is bad given my Canadian company reported the moving allowance as income.
I am hoping to be wrong on that one and hopefully someone can make me look at something else. Thanks for any insight.
moving expense
Moderator: Mark T Serbinski CA CPA
Your moving expenses cannot be deducted in either case, on your Cdn return, unless you report the income as well.
Logic: if you remained Cdn resident, then you did not reslly move. If you moved to US, then you wer no longer Cdn resident, and thus wouldn't report the wages, not get credit for the expenses.
On way back into Canada, you were not resident until after the move, this no expense eligible.
Only students, who by regulation and by treaty do not become tax residents of US while studying, thus remain Cdn tax residents, can claim moving expenses BACK to Canada, but not going down.
Logic: if you remained Cdn resident, then you did not reslly move. If you moved to US, then you wer no longer Cdn resident, and thus wouldn't report the wages, not get credit for the expenses.
On way back into Canada, you were not resident until after the move, this no expense eligible.
Only students, who by regulation and by treaty do not become tax residents of US while studying, thus remain Cdn tax residents, can claim moving expenses BACK to Canada, but not going down.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing 