When you need to relocate to another location, it is important to know if any of the relocation expenses are tax deductible or not. There can be a lot of relocating expenses that you can incur during a move and being able to deduct them from your taxes will help you be able to get back some of the money spent to get moved. This is always helpful for any person that is moving to a new location.
Before learning what can be deducted from your taxes for relocating, it is vital that you understand that there are rules governing the amount that can be legally deducted. For anyone that is relocating to another city or state for another position in his company or for anyone accepting a new job in another city or state, you can deduct most of the expenses from your taxes.
You must remember that distance is an important rule. In order to deduct any expenses for moving from the taxes, you must have a new job or home that is at least fifty miles away from where you are currently living or working. If it is less than fifty miles, then it is not, relocation expenses tax deductible.
Relocation Expenses Tax Deductions:
To help you understand this more, here are some of the different things that the IRS will allow you to deduct for relocation expenses tax.
1. If you plan on driving your car to the new home, then a certain amount per mile that is traveled will be deductible. You will need to keep any receipts that you receive from places such as, tolls, fuel, car repairs and maintenance because these are also IRS relocation expenses that you are allowed to deduct.
2. For anyone planning on having the moving company ship your vehicle while you fly to the new location, the cost of moving the vehicle and the cost for your airfare are tax deductible.
3. If you hire a mover, the expenses that are added up such as for loading, unloading, packing and unpacking and any cost you have for lodging and meals while waiting for things to arrive are all deductible.
These are just a few of the things that are allowed by the IRS as tax deductible for relocation expenses. You can get online and find a relocation expense calculator to help you determine what your expenses will be and what is deductible. Always do your research and talk to a professional about your taxes and the expenses that can be taken off your taxes at the end of the year. Moving is expensive enough as it is, if you can get some money back for the move, then that is the smartest thing to do.
Summary: When you need to relocate to another location, it is important to know if any of the relocation expenses are tax deductible or not. There can be a lot of relocating expenses that you can incur during a move and being able to deduct them from your taxes will help you be able to get back some of the money spent to get moved. This is always helpful for any person that is moving to a new location.
Read Other Relocation Expenses Articles Of Interest:
- Relocation Benefits
- Today’s Relocation Policy: Modifying Repayment Agreements
- Moving Services – Avoiding Mistakes When Choosing a Provider
Filed under: Relocation Services