6678

Moving Expense Deduction: Tax Implications Of Moving

No matter how much trouble and stress moving is, the good news is that you might be able to deduct a substantial portion of the cost of your moving expenses from your taxes! Tax Implications Of MovingThat’s good news for everyone when April comes. There are a few rules governing the amount of moving expense deduction you have, however.

If you are moving in order to relocate to another position in your company or to accept a new job in another city or state, you’ll be able to list your moving expenses tax deductible on your itemized tax form. Distance is important, though, because your new job and home are required to be at least fifty miles from your old house and employer.

If you drive your personal vehicle to your new home, you can deduct a certain amount per mile traveled. Be sure to keep receipts of all your vehicular expenditures; tolls, fuel, repairs and maintenance are all deductible when you drive your own vehicle to your new residence. You can also get credit for lodging and meals in the course of your travels. If you ship your vehicle and choose to fly there, you can also deduct the cost of transporting your vehicle plus the cost of airfare.

Should you decide to hire a moving company, Uncle Sam allows you to deduct the expenses you incur in loading, unloading, pack and unpacking and the cost of lodging and meals while you’re waiting for your goods to arrive. You cannot deduct lodging and meals after your household is unloaded into your new home.

If your goods are put into storage for a certain amount of time, some moving companies give you a discount for this, while they wait for a load going to the same area, you can also deduct the cost of this if it’s something you have to pay for.

Many employers reimburse some or all of their employees’ relocations expenses. In many cases, this is credited to you as income so check with your tax preparer before you claim it on your taxes. However, if your expenses exceed the amount your employer allows, you may deduct those costs. This is where it’s critical to keep all receipts and document everything possible!

Meals, lodging, tolls, fuel, airline fares, moving charges, extra charges from moving companies, and other expenses that exceed your employer’s allowance can all be tax deductible. But if you don’t have documentation in the form of receipts, you’re out of luck!

The IRS also requires that you work for at least 39 weeks for your employer in the first twelve months after you move into your new home. And all moving expenses must have occurred within twelve months after you first report to work at your new location.

You are also allowed to deduct the costs of tearing down and reassembling items such as above ground pools, satellite systems, hot tubs, Jacuzzis, and so forth. You can even deduct the cost of tipping the moving company’s driver!

While you’re doing your homework and reading moving company reviews, getting moving quotes from different moving companies and organizing your packing, be sure to research the tax implication of moving. Depending on your level of preparation, you could take a big hit or realize a sizeable deduction!




Protected by Copyscape Web Copyright Checker