Moving Expenses & Taxes- What is deductible?
How to get ready for your move after you sell your house.
Are all moving expenses deductible?
Moving Expenses and Taxes
This is the tax season and many families across america are moving, so are you wondering if you will be getting back some credit from your expensive move? Unfortunately, not all moving expenses are tax deductible. In order for uncle sam to put some of that money you spent on your move back in your pocket, your move has to qualify.
So what are some factors that can make your moving expenses eligible for a tax deduction?
- It has to be job related- In other words, moving to a new beach house for retirement is not going to fly. If you have a full-time job in the general area of your new home address for at least 39 weeks then you might qualify.
- Distance!– Many people think just because they move closer to work, that it constitutes as a good reason for job related tax deduction. But that is not true the IRS requires that the commute from your old home to your new job location be at least 50 miles longer that your old commute.
- Being Self-employed- If you are a business owner, you can move and take the moving deductions as long as you meet the 50 miles and 39 weeks requirements. If you are self-employed, you will need to meet the 50 miles and a longer 78 weeks criteria. Those who are self-employed, whether at a business location or at home, must work full time in the new location for 78 weeks (about 20 months) of the first 24 months after moving.
