Did you know moving expenses can be tax deductible?

Dated: 05/08/2014

Views: 6197

 Few people realize how generous the rules are about moving expenses and often overlook this valuable tax deduction. If you’re moving soon, get prepared with this guide!  
Are you planning a move for a new job? Are you relocating to find a new job? Are you moving and self-employed? Good news: If you meet any of these criteria, you may be eligible to deduct your moving expenses.  

As an “above the line” deduction, you don’t have to itemize the write-off, either. Expenses can include an array of items that really add up, including:    
  • - Utility disconnection and reconnection fees  
  • - Up to 30 days of storage unit costs  
  • - Hotel rooms (though not the expenses like minibars and meals!)  
  • - Shipping and packing costs (from the boxes to the moving company, etc.)  
  • - Travel to the new home, as well as automotive deductions of 24-cents/mile   
Now, as we all know, there are no freebies with the IRS. You have to meet some basic requirements. First, once you’re settled in your new location, you have to be employed full-time for at least 39 weeks of the next year (12 months after the move).
It doesn’t have to be the same company... just full-time employment for 39 weeks. If you’re self-employed, you need to be self-employed full-time for a minimum of 78 weeks of the next two years (24 months after the move).  
In addition to the duration of employment, you also must be a minimum distance from your original location. For the self-employed, a minimum of 50 miles applies. For those who commuted to a job, you must be 50 miles plus the distance of your commute. So if you drove 20 miles to your old job, the move must be at least 70 miles away from your old home (50 + 20 mile commute).  
Naturally, it’s a good idea to confirm these rules with your tax professional, as the IRS is often in the habit of updating, eliminating, or otherwise changing the criteria by which they judge deductions. The bottom line: Don’t miss out on this tax savings!  
This is just one of the many ways homeowners are rewarded come tax time. There are other ways you can keep more of your income by making the leap from renter to owner. I’d be happy to help you climb the path! Get in touch with me today:  Jackie Day at 937-760-9466 or Visit Us Online at http://www.RealtyDayton.com/
Blog author image

Jackie Cooper

Excellent service, honesty and commitment is my goal in assisting you whether buying or selling a home. ....

Latest Blog Posts

On Line Classes

 I have decide I am not an on- line class taking person. The motivation is for real difficult especially since nice weather is on the way. Speaking of weather Mother Nature has lost her cool

Read More

What Is Private Mortgage Insurance

What Is Private Mortgage Insurance (PMI)? When it comes to buying a home, whether it is your first time or your fifth, it is always important to know all the facts. With the large number of

Read More

This Current Market Has Much Potential And Upside For The Wise Investor

Let it grow let it snow let it grow! One of the best ways to grow your income is to buy investment properties! This current market has much potential and upside for the wise investor! however not

Read More

5 Reasons Home Ownership Makes Cents

5 Reasons Homeownership Makes ‘Cents’ The American Dream of homeownership is alive and well. Recent reports show that the US homeownership rate has rebounded from recent lows and

Read More