CAN I CLAIM MOVING EXPENSES IF I ENTER PARTNERSHIP AGREEMENT WITH SAME COMPANY (100% commission) TO MOVE TO TOWN WHERE CLIENTS ARE AND WORK FROM HOME OFFICE (New home is 45km from old home)?
Facts:
-My previous residence (in Town A) was 42.0km from my office, which is in a different town (Town B).
-During COVID, we began working from home 100%.
-In 2021, I signed a partnership agreement (still working for same company and office but under a different arrangement) and went from earning a combination of salary and commission to earning 100% commission in a partnership agreement to service clients in the area around the original office location (Town B).
- I moved my family to Town B, as this was an important part of the partnership agreement; the partner is letting me take over his book of business assuming that I will move to the area and be involved in the community (which is important to the business clients in Town B).
- Technically I moved 45km to get a home in the necessary area and I work from home now (distance from new residence to “new” work location is 0km, which I’m wondering if that will cause a red flag).
- The distance from my new home to the same office is 36.7 shorter so doesn’t meet the requirements, but since we’re working from home and I had to move to the area as part of the job I went from a 42km commute to a 0km commute when working from the new home.
Thank you in advance!!!
I believe you may be able to deduct your moving expenses, as you moved at least 40km, and you were required to do so because of your partnership agreement. However, you may want to double-check with the Canada Revenue Agency (CRA) directly. If you are in Canada or the United States, you can call the CRA at 1-800-959-8281. If you are elsewhere, you can call 613-940-8495. This page has more ways to contact the CRA: Contact the Canada Revenue Agency