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, there are a few rules that you should know when taking deductions.
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. Still, distance is important, because you can only deduct your moving expenses if your new home and job are at least fifty miles away from your old house and employer.
You can deduct a certain amount per mile traveled if you drive your personal vehicle to your new home. Travel expenditures such as tolls, fuel, repairs, etc. are also tax deductible, so keep all the receipts. You can also get credit for lodging and meals in the course of your travels.
In case you decide to hire a mover, 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. Unfortunately, you cannot deduct any lodging and meal expenses after you have unloaded your household goods in your new home.
If your goods are put into storage for a certain amount of time, some moving companies will give you a discount for this, while they wait for another load going to the same area. You can also deduct the cost of this if it's something you have to pay for.
Quite a few employers compensate some or all of their employees' relocations expenses. As this may be credited to you as income, check with your tax preparer before you claim it on your taxes. Still, expenses far above what your company sets up are tax deductible. At this stage, it is imperative to hold on to all of your receipts and journalize your expenditures.
Remember, food, accommodation, airfares, tolls, costs incurred when moving (including extra charges made by moving companies), and other expenses that your employer's expense allowance doesn't cover are all 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. And all moving expenses must have occurred within twelve months after you first report to work at your new location.
Furthermore, tearing down and reassembling products such as hot tubs, jacuzzis, and ground pools is tax deductible. You can even deduct the cost of tipping the moving company's driver!
Finally, while getting moving estimate from different moving companies and organizing your packing, be sure to research the tax implication of moving.
