Write Off Your Moving Expenses

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Real Estate

Write Off Your Moving Expenses

Moving to a new home can be an exciting prospect, but the actual move - packing, schlepping boxes, unpacking, trying to find that ONE box that has your favorite coffee mug in a mountain of brown cardboard containers - can be a big headache. But did you know that it might also get you some money back on your taxes? Many moving expenses are tax deductible, which can make the process and costs involved in your move a little bit less painful come tax time.

When it comes time to tally up what you owe Uncle Sam, be sure to ask your tax advisor whether your move means getting some money back. Below is a helpful breakdown of acceptable deductions. 

Moving expenses are tax deductible if:

  • Your new job or job transfer is at least 50 miles farther from your home than the old house was.
  • You had no previous job, the new one has to be at least 50 miles from your old house.
  • Your move makes your commute shorter than it was prior to the move. l If you are in the armed forces and had a permanent change of station.
  • If you’re working full-time (you expect to work at least 39 weeks out of the next 12 months). l If you incur expenses within one year from the day you reported to work at your new job.

The required length of time is waived in cases of a new job for members of the armed forces, those transferred by an employer, those who lost a job through no fault of their own, and those returning to the United States from abroad when they retire (or their survivors).

Qualified deductions include:

  • Packing and transporting household goods
  • Mileage for use of your own car (or gas and oil expenses)
  • Tolls and parking fees on the trip
  • Up to 30 days' storage of household goods
  • Disconnecting and connecting utilities
  • Transportation and lodging for yourself and members of your household while traveling to the new home.

Unfortunately, you can no longer claim up to $3,000 more for up to 30 days’ temporary living expenses, house hunting trips, or the costs of selling or buying a home. 

Have a question about moving, buying or selling? Contact me and ask!