Affordable Accounting and Bookkeeping
Loans Deduction Will Be Eliminated
The home relocation loans deduction will be scrapped off starting from 2018 upwards. This development came after a resolution reached at the proposed budget for the year 2017.
- What does the home relocation loans deduction stand for?
- What is changing?
- Where can I get more information about this change?
It only refers to the entitlement of an employee about to relocate to a new location, especially workers in Canada. When a particular employee gets a loan for relocation purposes, the home relocation loans deduction helps alleviate the tax benefit on the home relocation loan. In other words, it protects the employee from tax charges from the loan for relocation.
Since the agreement to eliminate the deduction in the 2017 budget, it will take effect from 2018. There will be no more home relocation loan deduction from the year 2018.
Details concerning the elimination of home relocation loans deduction can be seen in details from the Department of Finance Canada’s Budget 2017 documents. CRA is aware of the benefits of information to taxpayers and has taken it as its sole responsibilities to inform taxpayers of any changes in policies. Therefore CRA makes regular updates on their website, and every taxpayer should visit the website to read up new updates.