Can I claim any expense while working in different country?

[lucianka18]

I am a permanent resident of Canada and own a business in British Columbia. I spent a few months in the country where I am originally from. Can I claim any expenses from that country on my Canadian taxes?

[TurboTaxBrenda]

When you speak of expenses from your original country, can you clarify what kind of expenses you are speaking of? 

Thank you for choosing TurboTax.

[lucianka18]

Well pretty anything that I would normally claim in Canada, ex. office expense, part of rent, food, transportation. Or is there anything specific I can only claim in this situation? Or am I not allowed to claim anything while abroad?

[TurboTaxAniqua]

You can claim eligible expenses for a move to or from Canada if both of the following apply:

• You are a full-time student (including co-operative student), or a factual or deemed resident of Canada.

• You moved from the place where you ordinarily resided to live in another place where you ordinarily reside.

However, you cannot claim moving expenses if you rent an apartment in another country where you are working temporarily and you maintain residential ties in Canada.

The CRA allows couples to split moving expenses. If you split expenses between you and your spouse, only claim the portion of expenses that your partner isn’t claiming. It’s usually beneficial for the higher-earning spouse to claim all moving expenses.

Please review this article from CRA on Employment outside Canada and Taxation for Canadian working outside Canada 

Working.  For more information please contact CRA. 

Thanks for choosing TurboTax.

[lucianka18]

Thanks for your reply!

As I mentioned, I am neither employed nor a student. I operate a sole proprietorship in Canada, and all my clients are from Canada. They are invoiced, and payments are made directly into my Canadian bank account.

I have spent most of the year living in another country in Europe, where I am originally from, but I maintain permanent residency in Canada. This is why I’m asking if I can claim any expenses incurred while living in Europe (e.g., office expenses, meals, etc.).

I hope this clarifies my situation.

Thank you in advance for your reply!

[TurboTaxBrenda1]

Please contact the CRA at 1 (800) 959-8281; they will advise you of what expenses you can claim in your situation.

Thank you for choosing TurboTax.