You would only be able to claim the $40,000 deduction if your move meets the CRA eligibility requirements and your income at your new location exceeds that amount.
From the CRA documentation for Moving Expenses:
4.18. If an employee or self-employed individual’s total moving expenses eligible for deduction exceed income at the new work location, the excess expenses can be deducted in a subsequent year, to the extent of the income at that work location for that subsequent year. An individual’s income at a new work location can include income from employment as well as income from carrying on a business at that new location. It can also include income from more than one employment or business at the new work location.
You would only be able to claim the $40,000 deduction if your move meets the CRA eligibility requirements and your income at your new location exceeds that amount.
From the CRA documentation for Moving Expenses:
4.18. If an employee or self-employed individual’s total moving expenses eligible for deduction exceed income at the new work location, the excess expenses can be deducted in a subsequent year, to the extent of the income at that work location for that subsequent year. An individual’s income at a new work location can include income from employment as well as income from carrying on a business at that new location. It can also include income from more than one employment or business at the new work location.
Thank you! My income does exceed that so I guess the 40K will be eligible. Also the form states Taxes paid for the registration or transfer of title (do not include GST/HST) Does this include land transfer tax?
Yes, you can claim your Land Transfer Tax as well.
CRA states in their IT Folio on Moving Expenses;
f) legal fees related to the purchase of the new residence as well as taxes, fees, and duties (other than any goods and services tax or value-added tax) on the transfer or registration of title to the new residence.
Remember to keep all your receipts and legal documents involved with the move. On a claim this large, CRA will likely ask you to submit your documents to them for review.