Moving Expenses & Travel Distance: A Recent Court Case You Should Know About
If you’re planning to claim moving expenses, a recent Tax Court of Canada decision offers a helpful reminder: how you calculate your travel distance matters.
On August 25, 2025, the Court reviewed a case involving a taxpayer who moved in 2020 and claimed relocation expenses. The key question was whether the move reduced the taxpayer’s commute by at least 40 kilometres, which is required for moving expenses to be deductible.
The Dispute: Which Route Counts?
Both the taxpayer and the CRA used Google Maps—but they didn’t get the same results.
CRA’s calculation: 32.8 km difference, based on an eastern route suggested by Google Maps.
Taxpayer’s calculation: 47.4 km difference, based on a western route that Google Maps recommended during their actual commuting time.
This difference determined whether the move qualified.
Why the Taxpayer Won
The Court sided with the taxpayer for several reasons:
The “Shortest Normal Route” Matters: Past court decisions have established that the test should be based on the shortest normal route, not just any possible route.
Google Maps Is Now the Accepted Standard: The Court acknowledged that tools like Google Maps are widely used and represent the modern, reliable way to determine travel distances. Both parties relied on it, reinforcing its legitimacy.
Timing Makes a Difference:
The CRA agent ran the route at 7:45 pm—a time with different traffic patterns—because they were in another time zone.
The taxpayer showed that at 4:45 pm, their actual commuting time, Google Maps consistently recommended the longer western route on four out of five weekdays.
The Court agreed that using real commuting conditions produced a more accurate and fair measurement.
The 40 km Threshold Was Met: With the proper parameters, the taxpayer’s move reduced their commute by more than 40 km.
The Result: The moving expenses were deductible.
Takeaway for Taxpayers
If you plan to claim moving expenses, document everything:
Which mapping tool you used
The route selected
The time of day you ran the calculation
Any settings or parameters (e.g., traffic conditions)
Clear documentation can make all the difference if the CRA reviews your claim.
The preceding information is for educational purposes only. As it is impossible to include all situations, circumstances and exceptions in a newsletter such as this, a further review should be done by a qualified professional.
No individual or organization involved in either the preparation or distribution of this letter accepts any contractual, tortious, or any other form of liability for its contents