No matter how much trouble and stress moving is, the good news is that you might be able to deduct a substantial portion of the cost from your taxes! That’s good news for everyone when April comes. Still, be aware of the fact that when taking deductions you are subject to a few rules.
If you are moving in order to relocate to another position in your company or to accept a new job in another city or state, you’ll be able to deduct many of the expenses on your itemized tax form. However, distance is important, because your new job and home are required to be at least fifty miles away from your old house and employer.
If you drive your personal vehicle to your new home, you can deduct a certain amount per mile traveled. Also, be sure to keep all the receipts, as tolls, fuel, repairs and maintenance are all tax deductible. In the course of your travels you may get credit for lodging and meals. If you choose to have the moving company ship your car while you take an airplane to your final destination, you can also deduct the cost of transporting your vehicle plus the cost of airfare.
Should you decide to hire a moving company, Uncle Sam allows you to deduct the expenses you incur in loading, unloading, pack and unpacking, and the cost of lodging and meals while you’re waiting for your goods to arrive. You cannot deduct hotels and food expenses after your household is unloaded into your new home.
If you do not need your items immediately, several moving companies will offer you a discount if you store your items for a short period of time, while they wait for additional loads going to the same area. So, you can deduct the storage expense on your tax return.
A lot of companies will compensate a worker for at least some of the moving costs. As this may be credited to you as income, check with your tax preparer before you claim it on your taxes. Still, the costs which exceed the amount your employer allows are tax deductible. This is where it’s critical to keep all receipts and document everything possible!
Remember, all the expenditure that exceed your employer’s allowance (meals, lodging, tolls, fuel, airline fares, moving charges, extra charges from moving companies, etc.) can all be tax deductible. But you need to have your paper work in order, otherwise, forget about it!
It is also required that you work for at least 39 weeks for your employer in the first twelve months after you move into your new home. Plus, all the moving expenses must have occurred within twelve months after you started work at a new place.
Furthermore, tearing down and reassembling products such as hot tubs, jacuzzis, and ground pools is tax deductible. It is also possible to deduct the cost of tipping the driver!
So, when you are in the middle of checking out moving companies and doing all of your packing, don’t forget to also look into the impact that moving will have on your taxes. Depending on your level of preparation, you can take a big hit or realize a sizeable deduction!
Don’t fall victim to a rogue mover. Do your homework by requesting your free no-obligation moving estimate from well-respected movers. Get help as to what type of moving expenses click here to write-off on your tax returns. Compare their services and save up to 35% on your move.
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