Moving is an expensive proposition no matter how you look at it. If you are moving due to a new job or the relocation of an existing job be sure to keep meticulous details of all the cost of the move. Many of these expenses may be tax deductible. With the proper records you’ll be able to claim the deductions you are owed.
Go to the IRS website (IRS.gov) and download IRS Publication 521 and Form 3903. These will help spell out in detail the types of deductions a homeowner can take during a job relocation move. Some of the deductions might surprise you. For example, did you know that you can deduct the cost of connecting or disconnecting utilities?
Other deductible expenses include lodging and travel expenses for all member of your family. This includes airfare and/or vehicle mileage but does not include meals. In addition, you can deduct the cost of packing and transporting all of your household items.
There are some moving related items that are not deductible. This includes the costs of transferring vehicle registrations as well as fees associated with the buying or selling of a house.
Not all moves will qualify for these types of deductions. Your new job location must be at least 50 miles farther away from your current home than your current job location. There are also restrictions regarding how long you must work at your new job in order to qualify to take these types of deductions.
If your employer is covering any of the costs of your move, this will impact what is and is not deductible. Be sure to contact the IRS with any specific questions related to your move. In addition, don’t forget to include the IRS when sending out your change of address notifications.
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