If you travel for construction work in Newfoundland and Labrador, or anywhere in Canada, you may be eligible for the Labour Mobility Deduction (LMD).

This federal tax measure allows eligible tradespeople and apprentices to deduct up to $4,000 per year in temporary travel and lodging costs when working away from home.

Who Is Eligible

• Occupation: Must be an eligible tradesperson or apprentice working in construction (includes excavation, installation, repair, etc.).
• Distance: The temporary lodging must be at least 150 km closer to the work site than the member’s ordinary residence.
• Duration: The relocation must be for a minimum of 36 hours.
  Location: Both the ordinary residence and the temporary work location must be in Canada.

What Can Be Claimed

The maximum deduction is $4,000 per year, limited to 50% of the employment income earned at that temporary location. Eligible expenses include:

• Temporary Lodging: Hotel or short-term rental costs.

• Transportation: One round-trip from the ordinary residence to the temporary lodging.

• Meals: Consumed during the round-trip travel.

Note: Expenses are only eligible if they were NOT reimbursed by the employer.

How to Claim the Labour Mobility Deduction

• Forms: Members must use Form T777 (Statement of Employment Expenses).
• Specific Line: The LMD amount is calculated on Page 2 of the T777 and entered on Line 11 of the form.
• Tax Return: The final amount is then transferred to Line 22900 of the T1 Income Tax and Benefit Return.

The “Audit-Proof” Record Keeping Checklist

We recommend that you keep these records for at least 6 years:

• Daily record/log of expenses.
• Receipts for lodging and transportation (ticket stubs, fuel receipts).
• A log of kilometers driven for the relocation.
• Invoices and credit card statements.

Have Questions?

Trades NL is here to support our members with:

• Understanding eligibility
• Knowing what to track
• Connecting you with trusted tax guidance