22 June 1993 Internal T.I. 9312157 F - Transport of a House as a Moving Expense

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.

June 22, 1993

Attention:  XXXXXXXXXX

Transport of a House as a Moving Expense

We are replying to XXXXXXXXXX memorandum of April 23, 1993 concerning the definition of moving expenses as it relates to

XXXXXXXXXX

A technical review of section 62 of the Act suggests that the cost of moving the house in which a taxpayer lives is not a "moving expense" as defined in subsection 62(3) since the house itself is not a "household effect" described in subsection 62(3) of the Act. The use of the term "meubles" in the French version of the Act supports this position. We have confirmed with the Department of Finance that it is not their intent to allow a deduction for the movement of a permanent housing unit.

However, in paragraph 17 of Interpretation Bulletin IT-178R3 "Moving Expenses" dated May 28, 1993, we have taken the position that the cost of moving a mobile home with the household contents therein will be accepted as a moving expense to the extent that the cost does not exceed that of moving the household goods separately. This position requires a liberal interpretation of the phrase found in the wording between paragraphs (b) and (c) of subsection 62(1):

"moved from a residence .. at which, before the move, he ordinarily resided... to a residence .. at which, after the move, he ordinarily resided".

To adopt this position, the term "residence" must be interpreted as the location rather than as the actual dwelling.

We would be prepared to extend the same treatment to the movement of a more permanent dwelling in the unique circumstances described in XXXXXXXXXX letter. We attempted to determine if it was, in fact, feasible to move a house with its contents contained therein but were unsuccessful. Based on the assumption that it is feasible to move the house with the household goods contained therein, we agree that the cost of moving the house will be deductible provided that the household goods are contained therein and to the extent that the cost does not exceed the cost of moving the contents separately.

P.D. Fuoco Section Chief Personal and General SectionBusiness and General DivisionRulings DirectorateLegislative and Intergovernmental Affairs Branch