Deductible Moving Expenses
Yes, Uncle Sam stands ready to help soften the expense of your job-related move.
No, he isn't quite as generous about it as he used to be.You may be eligible
to deduct some moving expenses if:
- Your new job or job transfer is at least 50 miles farther from your home
than the old one was.
- If you had no previous job, the new one is at least 50 miles from your old
home.
- You are in the armed
forces and had a permanent change of station.
You are eligible if you are working full-time (defined as at least 39 weeks
in the next year.) Expenses are included if they are incurred within one year
from the day you reported to work at the new job. Time extensions are
sometimes granted, if, for example, you remained in your old home until your
daughter graduated from high school.
If you are self-employed, you also need at least 39 weeks in the 12 months
after the move.
Generous provisions, however, allow coverage without the required length of
time at the new job for members of the armed forces, those transferred by an
employer, those who lost a job through no fault of their own, and persons
returning to the United States from abroad when they retire (or their
survivors).
The expenses are deducted directly from your adjusted gross income, rather
than being included in itemized deductions. This may leave you free to take a
standard
deduction if that's usually to your advantage. It also bypasses the
regulations that sometimes make itemized deductions less valuable.
If you are qualified, you may deduct the expenses of:
- Packing and transporting household goods,
- Mileage for use of your own car (or gas and oil expenses)
- Tolls and parking fees on the trip
- Up to 30 days' storage of household goods
- Disconnecting and connecting utilities.
- Transportation and
lodging for yourself and members of your
household while traveling to the new
home.
No longer deductible: $3,000 more for up to 30 days' temporary living
expenses, house hunting trips, or costs of selling an old home and buying a new
one.
Edith Lank has been called the "Dear Abby of real estate". A licensed broker, she has answered tens of thousands of personal letters from readers who sent in questions to her syndicated real estate column. Her award-winning column is carried by more than 100 newspapers nationwide.
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