Summertime is a popular time of year for people to move. Typically homes sell better in the spring and summer and more people plan moves while their children are out of school for summer break. If you’re moving because of your job certain items related to the moving expense can be written off on your taxes. Make sure to keep all receipts and follow these rules issued by the IRS.
1. Expenses must be close to the time you start work
You can consider moving expenses that you incurred within one year of the date you first report to work at a new job location.
Your move meets the distance test if your new main job location is at least 50 miles farther from your former home than your previous main job location was from your former home.
Upon arriving in the general area of your new job location you must work full time for at least 39 weeks during the first year at your new job location. Self-employed individuals must meet this test and they must also work full time for a total of at least 78 weeks during the first 24 months upon arriving in the general area of their new job location. If your income tax return is due before you have satisfied this requirement you can still deduct your allowable moving expenses if you expect to meet the time test. There are some special rules and exceptions to these general rules. If you do not expect to meet the time requirement give us a call to discuss any available options.
You can deduct lodging expenses (but not meals) for yourself and household members while moving from your former home to your new home. You can also deduct transportation expenses including airfare vehicle mileage parking fees and tolls you pay but you can only deduct one trip per person.
5. Packing and Transportation
You can deduct the cost of packing crating and transporting your household goods and personal property including the cost of shipping household pets. You may be able to include the cost of storing and insuring these items while in transit.
You can deduct the costs of connecting or disconnecting utilities.
Some expenses related to your move are not deductible: car tags a drivers license renewal costs of buying or selling a home expenses of entering into or breaking a lease or security deposits and pre-move househunting expenses to name a few.
You can find out all you need to know about deducting moving expenses by talking to us at Lindemeyer CPA LLC.