Are you planning a move for a new job? Are you relocating to find a new job? Are you moving and self-employed? Good news: If you meet any of these criteria, you may be eligible to deduct your moving expenses.
As an “above the line” deduction, you don’t have to itemize the write-off, either. Expenses can include an array of items that really add up, including:
– Utility disconnection and reconnection fees
– Up to 30 days of storage unit costs
– Hotel rooms (though not the expenses like minibars and meals!)
– Shipping and packing costs (from the boxes to the moving company, etc.)
– Travel to the new home, as well as automotive deductions of 24-cents/mile
Now, as we all know, there are no freebies with the IRS. You have to meet some basic requirements. First, once you’re settled in your new location, you have to be employed full-time for at least 39 weeks of the next year (12 months after the move). It doesn’t have to be the same company… just full-time employment for 39 weeks. If you’re self-employed, you need to be self-employed full-time for a minimum of 78 weeks of the next two years (24 months after the move).
In addition to the duration of employment, you also must be a minimum distance from your original location. For the self-employed, a minimum of 50 miles applies. For those who commuted to a job, you must be 50 miles plus the distance of your commute. So if you drove 20 miles to your old job, the move must be at least 70 miles away from your old home (50 + 20 mile commute).
Naturally, it’s a good idea to confirm these rules with your tax professional, as the IRS is often in the habit of updating, eliminating, or otherwise changing the criteria by which they judge deductions. The bottom line: Don’t miss out on this tax savings!
This is just one of the many ways homeowners are rewarded come tax time. There are other ways you can keep more of your income by making the leap from renter to owner. I’d be happy to help you climb the path! Get in touch with us today: Kevin and Jennifer Hanley, REALTORS, Keller Williams Realty Atlantic Partners Southside, http://www.HanleyHomeTeam.com