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How to deduct Moving From Your Taxes |
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Before you move to a new home, you should know
the major tax deductions and limitations relative to moving.
Beginning January 1, 1994, moving expenses will no longer be an
itemized deduction. However, under the Omnibus Budget
Reconciliation Act of 1993, certain non reimbursed moving expenses
are allowed as a deduction in determining your federal adjusted
gross income. |
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If your move meets the necessary requirements,
reasonable moving expenses will be fully deductible. A handy
Expense Log is included on the back to help you keep accurate
records of your moving costs. |
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Deductible Moving Expenses
The non reimbursed cost of moving household goods and personal
effects to a new residence is permitted as a deduction in
determining federal adjusted gross income. This includes the actual
cost of transportation or hauling from your old residence to your
new one, the cost of packing and crating, unpacking, storage in
transit (limited to 30 consecutive days) and valuation (limited to
30 consecutive days).
- The cost of shipping your automobile is
deductible.
- The cost of transporting your household
pets-dogs, cats, tropical fish, etc. is deductible.
- The cost of moving your personal belongings
from a place other than your old residence summer home, relative's
home, etc. may be deducted, to the extent that it does not exceed
what it would have cost to move them from your old residence.
The family trip to the new residence is
considered a direct moving expense and is deductible. This includes
lodging, but not meals. |
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Who Qualifies
All taxpayers may deduct moving expenses,
even if they don't file an itemized return, as long as they meet
the qualifications listed below:
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You must be moving to a new principal
residence to work as an employee or as a self-employed
individual at a new principal place of work.
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Your new job location must be at least 50
miles farther from your former residence than your old job
location.
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You must be employed full time (by an
employer) in the general vicinity of the new job location for
39 weeks during the 12 month period following the move. This
condition is waived if you are not able to satisfy it because
of death, disability, or discharge (other than for willful
misconduct), and it is reasonable to expect that you would
have otherwise fulfilled the condition.
- The self employed individual must continue to work in the
new location (as a self employed person or as an employee) for
at least 78 weeks during the 24 months following the move, of
which at least 39 weeks must be in the first 12 months.
0 If you pay the expenses in one tax year, but do not satisfy
the working requirements by the due date of the tax return,
you may still deduct the expenses if you reasonably expect to
satisfy the condition in the succeeding tax year. However, if
you fail to satisfy the requirements in the succeeding year
you must either: (A) report an equal amount of income in the
succeeding year, or (B) amend the prior year return.
10 Foreign moves and moves by military personnel are subject
to special limitations. In these situations, you should seek
the advice of a professional tax advisor.
0 You may not deduct expenses in excess of a reasonable
amount.
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Resources
IRS Problem Solving Line 1 800 829 1040
IRS Publication 521 Moving Expenses
Library Select libraries carry audio cassette tapes and video
tapes with simple instructions to help you complete your Federal
Income Tax Forms. |
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