The somewhat new Folio on moving expenses does not contain any startling positions

The Folio on moving expenses, which was issued last year, is similar to IT-178R3. It has some added examples, including of an individual who moved for employment reasons from his previous dwelling A in Saskatoon into a temporary residence (dwelling B) in Regina for a few months before being able to possession of his permanent new residence (dwelling C) in Regina, who was not be able to deduct the costs of selling the temporary dwelling B as a moving expense (because the individual did not “ordinarily” reside there) – but nonetheless could deduct most of his moving costs on the basis that there was a move in two stages from dwelling A to C.

A different result occurs under a similar example: an individual moves from Halifax to Brampton to work in downtown Toronto and, after a few months, moves to a central Toronto location to eliminate the long commute. Here, CRA indicates that there was ordinary residence in Brampton, so that the moving expenses going from Brampton to downtown do not qualify.

Neal Armstrong. Summaries of Folio S1-F3-C4 under s. 248(1) – eligible relocation, s. 62(1) and s. 62(3).