Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Principal Issues: Are moving expenses deductible by students in full-time attendance at a post-secondary school when they move home for summer employment?
Position: Yes
Reasons: The move qualifies as an eligible relocation defined in subsection 248(1) of the Act.
XXXXXXXXXX 2012-044025
P. Waugh
October 24, 2012
Dear XXXXXXXXXX:
Re: Moving Expenses
We are writing in response to your email of March 17, 2012, concerning the deductibility of moving expenses. More specifically, you have asked whether an individual can deduct moving expenses when he/she moves home for summer employment after completing a semester at university.
In the situation you described, an individual moved more than 40 kilometres to study full time at a post-secondary institution. At the end of the school year, the individual moved home for summer employment. The summer residence is located at least 40 kilometres closer to the summer employment than the school residence.
Our Comments
In accordance with subsection 62(1) of the Income Tax Act, a taxpayer who moves from one residence to another residence can deduct qualifying moving expenses from specific sources of income if the move is an eligible relocation as defined in subsection 248(1) of the Act.
Where the facts demonstrate that an individual moves after a post-secondary school year to obtain summer employment, an individual would be permitted to deduct qualifying moving expenses from income earned at the new work location (i.e. summer employment), provided all other required conditions are met including the distance test. However, these qualifying moving expenses would not be permitted to be deducted against the income earned from employment during the school year.
We trust these comments will be of assistance.
Nerill Thomas-Wilkinson, CA
Manager
for Director
Business and Employment Division
Income Tax Rulings Directorate
Legislative Policy and Regulatory Affairs Branch
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