eBook Summary – Chapter 16

Other Deductions

Common deductions Moving expenses

1. CPP contributions on self-
employed earnings
2. Legal and accounting fees
incurred in an Objection or
Appeal
3. OAS clawback based on
indexed amount
4. Employment insurance benefit
repayment
5. Moving expenses
6. Childcare expense
Earn business or employment
Qualified moving expenses deductible
income in Canada
Moving expenses to extent income is earned in new
deductible if incurred location:
to Attend qualified post-  Travelling costs
secondary on full-time basis
 Transportation and storage costs
Conditions  Cost of meals and
accommodations up to 15 days
 Residence must be at least 40 km closer to new
work/school location  Lease cancellation on old
residence
 Expenses that exceed income from new
work/school location may be carried forward  Selling costs of old residence
 Expenses must be paid (not reimbursed)  Legal fees and title transfer of new
residence (if old residence sold)

Childcare expenses Childcare limits

 Deductible to the lower income spouse, Age Under 7 7 to under 16 16 or over Any age
within limitations
No disability or No disability or
 Higher-income earner can deduct, within disability that disability that Disability — Disability —
limits if lower-income spouse is: Attribute does not does not Does not qualify for Qualifies for
- In full-time or part-time attendance at a qualify for qualify for disability credit disability credit
disability credit disability credit
designated educational institution
- Confined to prison for at least two weeks Maximum amount $8,000/child $5,000/child $5,000/child $11,000/child
- Infirmed and incapable of caring for the
children for at least two weeks Limitation —
- Living apart from higher-income earner camps/transfer to $200/week $125/week $125/week $275/week
for at least 90 days and child resides with higher-income spouse
higher-income spouse
Limitation — income All are limited to 2/3 of taxpayer’s earned income

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