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.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
April 6, 2001
XXXXXXXXXX
Dear XXXXXXXXXX:
The Honourable Martin Cauchon, Minister of National Revenue, has asked me to respond to your letter of February 26, 2001, concerning your request that real estate commissions arising on the purchase of a residence by an individual be deductible as moving expenses.
The Income Tax Act permits an individual to deduct eligible moving expenses in certain circumstances. Subsection 62(3) of the Act describes eligible moving expenses. In the case of acquisition costs of a residence, that provision essentially only allows legal fees paid by an individual in connection with the purchase of the residence, as well as land transfer taxes or taxes on the registration of title to the residence, if the individual or spouse has sold the old residence as a result of the move. Accordingly, commissions paid by an individual in respect of the acquisition of a new residence do not qualify as an eligible moving expense.
An amendment to the Act would be required in order for an individual to be able to claim a moving expense deduction for real estate commissions related to the purchase of a residence. Since the responsibility for changes to the legislation falls within the jurisdiction of the Department of Finance, I have forwarded a copy of your correspondence to Mr. Munir Sheikh, Assistant Deputy Minister of the Tax Policy Branch of that department, for his consideration.
I appreciate being made aware of your concerns.
Yours sincerely,
Bill McCloskey
Assistant Commissioner
Policy and Legislation Branch
C.C. Mr. Munir Sheikh
Assistant Deputy Minister
Tax Policy Branch
Department of Finance
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© Her Majesty the Queen in Right of Canada, 2001
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© Sa Majesté la Reine du Chef du Canada, 2001
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