Tax Deductions and Credits: Corporate Relocation in Canada

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Last week we discussed Tax Credits and Deductions – Corporate Renovation in Canada This week, we are focusing on Tax Deductions and Credits in Corporate Relocation in Canada. With tax deductible expenses specifically for corporate relocation, companies should not worry about additional taxes and expenses that moving one’s office entails. In fact, with D.J. McGauley & Associates, the costs of your corporate relocation will be much more affordable than with any other corporate specialist.

Provincial Land Tax Rebate Program for Vacant Commercial and Industrial Buildings

When moving out and leaving an industrial or commercial property that you own either partially or entirely vacant, you can qualify for a rebate of Provincial Land Tax throughout the entire period of your vacancy. As long as a commercial building is entirely vacant for around 90 consecutive days and remains unused, you may ask for a rebate of your property tax until February 28.

If you’ve already paid the provincial land tax for the building you own and are currently occupying, there’s no need to wait until the end of the fiscal year before you move out and let it stop you from moving.  Take note that this is only available for Ontario businesses.

Moving Expenses Deduction

If one of your fears in corporate relocation is that you might end up paying taxes twice, and even incurring additional taxes, the moving taxes deduction should put your worry to rest. This tax deduction is available for businesses that will be carried on in a new location that is at least 40 kilometers away from the previous workplace.

You can claim reasonable amounts for the following:

–          Transportation and storage costs (including packing, hauling, in-transit storage, insurance, and storage) for all effects

–          Travel expenses either through the detailed or simplified method. By using the detailed method, you can deduct expenses ranging from your meal expenses to the vehicle expenses, as long as supported by receipts and records. With the simplified method, you can calculate the number of kilometers from the takeoff place to the destination.

–          Cancellation of lease cost is for the deductions on the rental period that you weren’t able to use up

–          Incidental costs covers the fees for the change on legal documents, the replacement of driving licenses, and utility hook-ups

–          Cost to maintain the old office of as much as $5,000, including the property taxes, the insurance premiums, the interest, and the utility expenses

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