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Finance > Real Estate > Deducting Moving Expenses From Taxing
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Article rating : 0.00, 0 votes. Author : Apartmentlinks.com
Many of you know that a portion of your apartment rent is tax deductible. But most of you may not be aware that the apartment moving expenses are also tax deductible to some extent. You can file a tax return for lodging expenses, moving goods and temporary storage of goods. But there are some criteria, which you should be eligible for tax deduction.
All the moves are not tax deductible, however, there can be adjustments to your income like lodging expenses you incur while on the move excluding cost of meals, expenses of moving goods to the new place and the costs incurred for the temporary storage of your goods while on move for up to 30 days. You can deduct these expenses whether you itemize or not. However, you will get these deductions only when you qualify the conditions of start of work, distance and work duration.
Start of Work: You should move to the new place with in the period of 12 months of you start working at the new job. If you could not move near to your new job with in the stipulated period without a valid reason, you can’t get tax deductions for your move.
Distance Criteria: The distance from your new job should be more than 50 miles from your old home when compared to old job. That means if you are traveling 10 miles from your old home and old job and now you need to commute 60 miles to your new job, you are qualified for a tax deductible move. You should calculate all these distances considering the shortest possible rout.
Work Criteria: You must be working as a full time employee within 13 weeks of the move and must follow your move with at least 39 weeks of work in the 12 months. This means you can switch jobs as a full time employee. This rule is just to ensure you moved just because of your job change and not for a change in neighborhood. You need not necessarily work for a single employer or continuously work in a row for 39 weeks. But make sure that you work in the same general commuting area during the period.
This information helps you in getting eligibility for a tax return on moving expenses, which can save a considerable amount for you.
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