Ivan relocates for a new job and wants to know whether his move may qualify for the work-related moving expense deduction. What minimum distance test is generally relevant?
A.
The new home must be at least 10 kilometres closer to the new work location.
B.
The new home must be at least 25 kilometres closer to the new work location.
C.
The new home must be at least 30 kilometres closer to the new work location.
D.
The new home must be at least 40 kilometres closer to the new work location.
The standard Canadian moving-expense test requires the new residence to be at least 40 kilometres closer to the new work or business location than the old residence was. Option D states the relevant threshold. Options A, B, and C understate the distance requirement. In a planning context, the distance test is only the starting point. The planner should also consider whether the move relates to eligible employment or business income, whether expenses are reasonable and properly documented, whether reimbursement was received from an employer, and whether expenses are deductible only against income from the new work location. The deduction can matter when clients change jobs, relocate for self-employment, or move for post-secondary attendance in specific circumstances. The key exam distinction is that the rule is not based on the total distance moved; it compares how much closer the new home is to the new workplace. References/topics: moving expenses, employment relocation, tax deductions, distance test.
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