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The nature of employment these days is such that you often have to move from time to time. If you have gone this process recently, there is some good news for you. You just might be able to claim some tax deductions related to it. Death, taxes and moving. With me, it is a close call on which one I dislike more! Okay, death is definitely the winner, but moving is a close second. Unfortunately, we are all moving more and more due to a changing employment environment. It used to be that you could take a job with a company and count on staying there for thirty or forty years. Those days are long gone as we all know. From downsizing to salary concerns, we all move because of employment reasons. The federal government always seems to be about 20 years behind the times, but not in this case. It has acknowledge the changes in society and created tax deductions for people who move for employment purposes. Since we are talking taxes, nothing can be straightforward. Yep, you have to pass a few tests before claiming moving deductions. First up, your new job must be 50 miles more from your first home than your new place of employment. Confused? Let's look at an example. Assume I work a my horrible job which is 9 miles from my home. I take my new wonderful job which is located 109 miles from my home and I have to move. Since the difference is 100 miles, I can claim moving deductions. One test is never enought with taxes. You must also pass a time test that requires you to be employed full time in your new position for a miniimum of 39 weeks out fo the 48 immediately following your move. Oddly, the IRS also allows deductions to be claimed by the self-employed if you meet the above requirements. The time test is expanded, however, in that you have to work 78 weeks in the first 96 weeks. As with most new deductions, the IRS is sensitive to abuse. If you run the tests and don't qualify for the deduction even though it is close, don't make a claim. It could spark an audit, which really would be bad news. Given all this work, are the moving deductions worth it? Well, they can be. It depends on what you incur as costs. You can deduct all reasonable expenses such as truck rentals and travel costs from your old home to the new one.
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Aazdak Alisimo writes about moving issues. Find moving companies in your area at MovingCompaniesforYou.com.
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