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Level 2

Travel expenses- relocation - employment expenses

Good day,


I have one client in Manitoba who temporally relocated to Fort McMurray in 2022 for a construction job. His employer paid the transportation from Calgary to Fort McMurray and he needs to pay for the flight from Winnipeg to Calgary. The job requires to work 3 weeks straight without break and follow by one week off, so he went back to Winnipeg during the week off. He is entitled to claim one round trip for relocation for sure, but just wondering if he is able to claim all his flights every month as employment expenses. Your thoughts on this are truly appreciated. 

4 Comments 4
Level 7

Travel expenses- relocation - employment expenses

No, as long as he is still a resident in Winnipeg and chooses to work in Fort Mac, his expenses of getting to and from his personal residence are not an allowable employment expense.  There have been several court cases on this matter.  He would have to not have a residence in Winnipeg, have a residence in Fort Mac, and have closer ties to Fort Mac than to Winnipeg.  For example, if he has medical in Manitoba, a drivers license, family, bank accounts etc. in Manitoba, he has not severed his residential ties to Manitoba.

Level 2

Travel expenses- relocation - employment expenses

Thank you so much for your thoughts. But I think my client is qualified for the Labour Mobility Deduction.


The Labour Mobility Deduction provides eligible
tradespeople and apprentices working in the construction
industry with a deduction for certain relocation expenses.
To qualify for the labour mobility deduction (LMD), you
must be an eligible tradesperson who had an eligible
temporary relocation and incurred temporary relocation
expenses. This deduction applies to the 2022 and
subsequent taxation years and allows an eligible
tradesperson to deduct up to $4,000 in eligible temporary
relocation expenses per year. The maximum amount of
eligible temporary relocation expenses that could be
claimed for a particular eligible temporary relocation is
limited to 50% of the eligible tradesperson’s employment
income from construction activities at the eligible
temporary work location in the year.
Eligible tradesperson
An eligible tradesperson is a tradesperson or an apprentice
■ has income from employment
■ performs their duties of employment in construction
Construction activities include the erection, excavation,
installation, alteration, modification, repair, improvement,
demolition, destruction, dismantling or removal of all or
any part of a building, structure, surface or sub‐surface
construction, or any similar property.
Eligible Temporary Relocation
To qualify as an eligible temporary relocation the relocation
must be temporary in nature and meets all of the following
■ The relocation is undertaken by the eligible tradesperson
to enable them to perform their duties of employment as
an eligible tradesperson at one or more temporary work
locations situated in the same locality
■ Prior to the relocation the eligible tradesperson ordinarily
resided at a residence in Canada
■ The eligible tradesperson was required to be away from
their ordinary residence for at least 36 hours
■ During this period, the eligible tradesperson took up
temporary lodging in Canada
■ The distance between the eligible tradesperson’s
ordinary residence and the temporary work location
must be not less than 150 kilometres greater than the
distance between each temporary lodging and each
temporary work location of the taxpayer
A temporary work location is a location in Canada that
■ where the eligible tradesperson performs their duties
of employment under a temporary employment
■ outside the same locality (e.g., a city) where the
eligible tradesperson is ordinarily employed or carries
on a business.
The temporary relocation deduction is calculated in
respect of each eligible temporary relocation. This means
that you may have multiple temporary relocation
deductions in 2022dit. 



Level 7

Travel expenses- relocation - employment expenses

I was not aware of this deduction for construction workers - I incorrectly presumed that the individual was working in the oil industry.  I would check the details of the job more carefully to ensure that it is a temporary contract and a temporary location that would qualify for this deduction.  When you mention a whole year, I wonder if it is, in fact, a temporary location and that he in fact worked for this employer closer to home initially and the employer caused the temporary relocation.

Level 1

Travel expenses- relocation - employment expenses

Good morning,

I have a client in the same situation.  Was the labour mobility deduction accepted by CRA?  Did you record them for each monthly trip?