Intuit QuickBooks Moving Day Checklist: A Comprehensive Guide to Claiming Relocation Expenses

When relocating for work, it's essential to keep track of all the associated moving costs to claim them as deductions on your tax return. With Intuit QuickBooks, you can simplify the process and ensure that you're not missing out on any eligible expenses. Here's a comprehensive checklist to help you get started:

Detailed Method vs. Simplified Method

You have two options when claiming relocation expenses: the detailed method or the simplified method of deductions. The detailed method requires calculating actual moving costs, including receipts as evidence, while the simplified method allows you to claim meal expenses as a flat rate per person without providing detailed receipts.

Expenses Covered

The following expenses are eligible for deduction:

1. Selling Your Old Home: Advertising, real estate commissions, legal fees, and mortgage penalties

2. Cost of Maintenance for the Old Home when Vacant: Up to $5,000 covering heating, utilities, interest, property taxes, insurance premiums, and reasonable efforts to sell the house

3. Lease Cancellation: Expense incurred from cancelling your old home's lease to move (does not apply to periods before cancellation)

4. Temporary Living Expenses: Up to 15 days of accommodations and meal costs for you and your household (near the old or new home)

5. Storage Costs: In-transit storage and insurance needed to move to the new location

6. Transportation and Travel Expenses: Vehicle expenses, meals, and accommodations while transporting household items and moving

Eligibility

To claim business moving expenses on your income returns, you must:

1. Be moving within Canada or have relocated from outside Canada to work in the country

2. Earn self-employed income or employment income at your new place of business

3. Establish your new home at least 40 km closer to your new place of work than your previous home

4. Moved during the year as a result of a new job or business venture

5. Be a deemed or factual resident of Canada

Claiming Relocation Expenses

To successfully claim relocation expenses, ensure you:

1. Keep accurate records of all moving costs and receipts

2. Calculate actual moving costs using the detailed method (if applicable)

3. Claim eligible expenses on your tax return using the simplified method or detailed method

By following this checklist and using Intuit QuickBooks, you can simplify the process of claiming relocation expenses and ensure that you're not missing out on any eligible deductions. Consult with a tax professional if you have any questions or concerns about claiming relocation expenses on your tax return.

Intuit quickbooks moving day checklist