Deductions for Moving Expenses

If you have an Encinitas home for sale or are moving into a home for sale in Encinitas, you may be able to take advantage of tax deductions for moving expenses.

Whether you are moving within the same city or moving across country to Encinitas, moving expenses can often be quite costly. However, it is possible to include these moving expenses as deductions on your taxes. So when can you deduct?

  • Is the Move Job-Related? – If you are moving because of your job it is often possible to take advantage of deductions on moving expenses. These reasons may include: a change in your job to another location, a new job in a new location, the entire business relocating.
  • How Long Have You Been Employed? – In order to qualify for moving deductions it is necessary to be employed for 39 weeks in the first 12 months of your move as a full-time employee. You do not have to spend the entire 39 weeks at the same job and if you are transferred or laid off you will not be penalized.
  • How Far is the New Commute? – To receive tax deductions you will need to show that your commute is 50 miles longer from your new home to your new job than it was previously. In short, this means that if you previously lived 10 miles from the job site that your new job location is more than 60 miles from your old home.
  • Are You Receiving Employer Assistance? – If you are receiving financial reimbursement from your employer to move you may not be able to deduct expenses from your taxes. If your employer is paying for a portion of the move or not paying for the move at all you may be able to receive deductions if you meet the other criteria.
  • What Expenses Should I Keep Track Of? – Deductible moving expenses include the cost of travel for yourself as well as the cost of packing, crating, or transporting the items you are moving. For a comprehensive list of the items that you can deduct you can visit the IRS website.

If you are looking to move into an Encinitas home consider the possibility of these deductions to offset moving expenses.

By Linda Moore

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