Month: February 2013

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

Tax Credits and Deductions: Corporate Renovations in Canada

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Without careful planning and a corporate specialist, the corporate renovation you’re planning might well drain your company’s finances. Most companies don’t realize it, but there are several tax deductions and tax credits by which they can benefit while undergoing a corporate renovation. With D.J. McGauley & Associates and the appropriate tax deductions, the costs of your office renovation will be much lower than usual.

Maintenance & Repairs

One important deduction is in Line 8960 for expenses accrued in maintenance and repairs. This will allow you to deduct the cost of labor, maintenance and repairs for any maintenance work and minor repairs for the property you use to earn income.  This applies to parts of your office that have not undergone major repairs but have nonetheless undergone maintenance and improvements. Excepted from this deduction is the value of your own labor and costs of repairs that are capital in nature, which are deductible in the next section.

Capital Cost Allowance

Undergoing a corporate renovation will inevitably mean the acquisition of new capital assets, which may qualify as a deduction under capital cost allowance. This deduction applies to furniture, equipment, and technologies acquired for the use of business or professional activities. While you cannot deduct the entire cost of the property right away, you can deduct its depreciable cost over time depending on its estimated lifetime.


While undergoing a renovation, you might make use of supplies that would otherwise not qualify under the two preceding sections. This is where you can apply for a deduction under this section. Here, you can deduct items that the business used indirectly in its business, allowing certain refurbishments done to your workspace that are not directly related to your business goals to be deductible.  

Accounting, Legal and Other Professional Fees

A renovation will require external professional advice or services that will entail consulting fees. For such expenses, you can apply for a deduction under this section. With this deduction, you can put to rest any fears that consultation with specialists will only increase the costs of your renovation.

Provincial Land Tax Rebate

If you plan on leaving the commercial building for a period of at least 90 consecutive days, you may qualify for a rebate of the tax you have already paid.

Make sure to tune in next week as we discuss Tax Deductions and Credits in Corporate Relocation in Canada.