|A closer look:
Income tax deductions
your move is work-related, you may be able to deduct certain moving
expenses. The key is whether you meet the IRS tests for time and
A) According to the IRS
Web site, "You can generally consider moving expenses incurred
within one year from the date you first reported to work at the
new location as closely related in time to the start of work. It
isn't necessary that you arrange to work before moving to a new
location, as long as you actually do go to work."
Fortunately, the IRS gives an example to clear that
You must move within one year of starting a new job
if you want to deduct the moving expenses. But if you can show that
circumstances delayed the move, you can still deduct.
For example, if you moved for a new job, but your
family stayed behind for 18 months to let the kids finish high school,
you still can deduct your allowable expenses.
B) You have to work
full time in your new job for at least 39 weeks during the first
If you're self-employed, you need to meet the above
requirement plus work full time for a total of 78 weeks during the
first 24 months.
There are exceptions to the time test -- they're spelled
out on the IRS Web site.
Your new job must be at least 50 miles farther from your old home
than your old job was from your old home. In other words, if you
lived three miles from your old job, your new job has to be at least
53 miles from your old home.
Deductible moving expenses:
Check for new rules, but here's what is currently deductible.
Household goods and
- Deduct the cost of packing, crating and transporting
household goods and personal effects belonging to you and your
family. You can include the cost of storing and insuring these
items within any period of 30 consecutive days after the day your
things were moved out of your former home and before they were
delivered to your new home.
- The cost of connecting or disconnecting utilities.
- The cost of shipping your car and pets.
- The cost of shipping your household goods and personal
effects from a place other than your former home. In other words,
if they were in storage at some place.
- Transportation costs for you and your family en
route to your new home. If you travel by car you can use actual
expenses for gas and oil, or you can take whatever the IRS is
granting that year as a per mile cost. Be sure to keep receipts
to account for your expenses. You can also deduct parking fees
and tolls, but you can't deduct repairs, maintenance, insurance
- Lodging costs for you and your family are also
deductible, but you can't deduct any expenses for meals.
You may also be able to deduct some expenses related
to the sale or purchase of a home. Check with the IRS or your tax
preparer for specific details.
-- Posted: Oct. 15, 1999
take | A closer look
| Cut the costs |
Cut the confusion