Tax Court of Canada


Income tax

Other deductions

Taxpayer was not obliged by her employer to divide her time between two cities

Taxpayer was reassigned to position in different city and was given lump sum compensation payment from her employer for moving expenses. For three months, taxpayer regularly travelled between two cities. Taxpayer deducted $25 per day for housing and $51 per day for food for 51 days of temporary housing, and deducted $8,770 in cleaning and repair expenses with respect to new condo she purchased in new city. Taxpayer appealed denial of deductions. Appeal allowed in part. Cleaning and repair costs did not meet requirements as they were incurred only to maintain lifestyle in first city, so expenses were incidental to move. Section 62(3)(c) of Income Tax Act provided that expenses for meals and lodging were deductible for maximum of 15 days. Taxpayer was not obliged by her employer to divide her time between two cities, so taxpayer could not deduct more than 15 days for temporary housing and meals. Appeal was allowed for sole purpose of granting temporary housing deduction for 15 days at cost of $25 per night, given Minister’s admission at hearing, and appeal was otherwise dismissed.

Sottile c. R. (2018), 2018 CarswellNat 6176, 2018 CarswellNat 6526, 2018 TCC 209, 2018 CCI 209, Alain Tardif J. (T.C.C. [Informal Procedure]).

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