Multiple moves over 3 years - transporting a camper.

[MoverNShaker]

Okay, I have a complicated question about moving expenses that I can't find the answer to reading or searching.  My situation isn't straightforward, but I'm sure the answer is simple for someone who knows and can apply the rules:

• I moved with my family from Alberta to take a new job in BC in late 2011.
• In 2012, I claimed moving expenses for year 2011. (note: we decided to leave our family camper in storage in Alberta until we found suitable storage for it in BC later, so did not pay or claim any moving expenses for transporting the camper).
• My claim was 'reviewed' by CRA in late 2012, and as I did not supply all paperwork required within the deadline provided, my claim was re-assessed, rejecting my moving deductions.  (please skip the lecture here, I know I could have done better).
• In 2014, I moved to a new BC location (much more than the 40km threshold) for a new position.
• In 2015, having found a suitable garage for the family camper in our new home, I made a trip to Alberta to bring it out of storage and transport it to our new home.
• I am filing my taxes for 2014 presently.
• I am about to formally ask CRA for a review of my 2011 tax claim, properly including eligible moving expenses for that year.
  
  
  
• QUESTIONS: I feel that the costs of moving the camper are deductible, based on what I have read.
• So are they? If so:
• for which year/move would I claim them- 2011 or 2014?
• Would I spread the costs/deductions over the two moves (i.e. for the Alberta to BC move in 2011 against 2011 taxes then the proportionate calculation for the 2014 move against 2014 taxes?
• how would I go about calculating eligible costs? - I don't even know how carry-forward rules would apply in this case.
  
  
  Any help or advice would be appreciated!
  Thanks!
  
  
  MoverNShaker

[Delphision · Accepted solution]

Since the move took place in late 2011, you should do a T1 adjustment and prepare a T1-M along with all of your supporting documentation for the 2011 tax year.  As you can only claim a deduction up to the amount of income earned at the new location, the remainder of the moving expenses, including storage costs for the camper in 2011.  I can't see claiming costs to move the camper in 2011 as you did not move it.

Depending on when the second move took place in 2014, that is when the camper should have been moved and the costs included in the 2014 moving expenses.  If it was again, late in the year, you might be able to claim the camper relocation costs as you will likely have another carry forward amount.  If not, I suspect that they will disallow the costs to move the camper that long after the move.

You can always check in at CRA for an opinion 1-800-959-8281

[MoverNShaker]

Thank you Delphision for replying!

1) I get that moving expenses can only be deducted from income at the new location, with carry over amounts to the next year depending on the amount income earned at the new location in the year of the move.
But the information available indicates that moving expenses incurred in the year following the move may also be deductible:

e.g. http://www.cra-arc.gc.ca/E/pub/tp/it178r3-consolid/it178r3-consolid-e.html
"...22. In some cases, all eligible moving expenses may not have been incurred by the time a taxpayer's return for the year of the move is filed (e.g. sales commission on the delayed sale of the former residence). If additional moving expenses incurred are deductible from income earned at the new location in that year or in the following year, as outlined in 3 and 11 above, the taxpayer should provide particulars and available receipts to the local taxation office and request an adjustment of the tax returns..."


2) But even if my camper moving expenses are deductible in this case, I'm curious how they would apply/allow the calculation, i.e. would the cost of moving the camper in a single trip be attributed to the 2014 move - given the following:
My 2011 move (A to B) was 1142 km - camper left at location A.
My 2014 move (B to C) was 83 km - camper still at location A.
My 2015 camper move (A to C) was 1282 km (I wish to claim this expense against the 2014 income at the new location C.)

3) Incidentally, I did not incur commercial storage costs for the camper, I had a private arrangement to park it in someone's residential garage for the 3.5 years, and paid for insurance (auto) coverage (fire,theft, PLPD, etc.).
 
I realize that however I claim this expense, it will probably be subject to a review, I just want to file the claim having at least done some research on the method so that it's not just a blind stab at it.

I do appreciate the reply - thank you.  And yes, I will call the 1-800# and ask for guidance as well.

Cheers!

MoverNShaker

[Delphision]

I think the intention is to allow you to claim additional amounts that are already in process but not completed until after the calendar year end.  Often closing dates are delayed.  I don't think the intention is to allow deductions for expenses not directly related to the move.  Post back when you get an answer from CRA.