these Folio updates

On April 5, 2016, CRA cancelled Interpretation Bulletin IT-178R3, Moving Expenses, and replaced it with Folio S1-F3-C4, Moving Expenses. Some additions to the Folio that were not previously in the IT include:

• Increased discussion to emphasize the importance of the connection between moving and business, employment, or attendance at an educational institution.
  
  Students resident in Canada who carry out an eligible relocation to attend an educational institution may deduct moving expenses against non-exempt scholarships (Paragraph 56(1)(n)) and research grants (Paragraph 56(1)(o)).
   
• Discussion on moves for self-employed individuals.
• Commentary that amounts received under the Wage Earner Protection Program Act in respect of an individual’s employment at a new work location are taken into account when computing the deduction for moving expenses. The Wage Earner Protection Program compensates eligible workers from unpaid wages, vacation, severance and termination pay they are owed when their employer declares bankruptcy (see http://www.servicecanada.gc.ca/eng/sc/wepp/index.shtml).
• A paragraph has been added which emphasizes that moving expenses are not deductible in computing an individual’s income if they are paid by a person other than the individual or the individual’s spouse or common-law partner. It also reflects CRA’s practice that allows spouses or common-law partners to decide who will claim the moving expense deduction or how the deduction will be shared.
• Discussion has been added concerning the impact of a delay in selling the old residence on the eligibility of expenses related to such a sale.
• Two examples are given to illustrate the treatment of moving expenses in the context of multiple moves.
• Commentary that a move that occurs solely for personal purposes cannot be considered an eligible relocation.