I don’t know about you, but when I think of moving, I think of all of the expenses that tend to pile up – gas, wear and tear on your vehicle, meals, and possibly a moving company if you’re moving far away. The thought can be a bit overwhelming, but it doesn’t have to be!
You may already know this, but some moving expenses are tax deductible! Let’s take a further look at what qualifies you for these deductions, then see what you can deduct:
- Your new job (or transfer) if at least 50 miles farther from your home than your previous house. – If you had no previous job, the new job must be at least 50 miles from your previous house.
- Your move makes your commute shorter than it was prior to the move.
- You are a member of the armed forces and had a permanent change of duty station.
- You are working full-time – meaning you expect to work at least 39 weeks of the next 12 months.
- You incur new expense within one year of the day you reported to your new job. – the required length of time is waived if the new job is for a member of the armed forces, those transferred by an employer, those who lost their job through no fault of their own, and those returning to the United States from abroad when they retire (or their survivors).
If you meet one of more of the above criteria, congratulations! You’re likely eligible for tax deductions on your moving expenses.
Now, you may be thinking… “What can I deduct?”
The answer is quite simple:
Packing and transporting household goods
Mileage for use of your personal vehicle – OR gas and oil expenses
Tolls and parking fees on the trip
Up to 30 days’ storage of household goods
Disconnection and reconnection of utilities
Transportation and lodging for you (and members of your household) to the new home
Please note – house hunting trips, costs associated with buying and selling a home, and $3,000 for up to 30 days temporary living expenses are no longer included in the list of qualified deductions.
Consult an accountant for further information on what qualifies as a deductible moving expense.
Moving and moving costs can feel overwhelming, but I hope these tips make your new season easier! And if you need assistance buying or selling, let me know! I’m here to help you any way I can!
Have a beautiful day!
Diane