I received an inquiry from a client this week regarding real estate commissions and tax returns. The client sold his home in 2012 and was thinking he could claim the commission he paid to his Realtor as a seller.

I have reviewed this with my accountant and, yes, you can claim real estate commission that was paid out the previous year.  However, you can only claim the allowable deduction if you are moving more than 40 km away for your job.  If you are relocating due to employment you can claim moving expenses and commission is part of that.

If you are simply moving within Barrie or within your present community, you can’t claim real estate commission.