For the majority of homeowners and renters around the world, moving is one of the most difficult tasks to complete. Moving takes a lot of time, energy, and, most of all, money. Moving is often also extremely expensive, from hiring professional movers to putting down an initial payment or deposit on your new place, leaving many people to wonder, “are moving expenses tax deductible?” The short answer is yes, sometimes! Keep reading to learn more.
Are Moving Expenses Tax Deductible?
In order to qualify for tax deductions on the cost of your move, you must meet certain criteria. In order to qualify, you must:- Start a new job within a year of moving
- Receive no moving assistance funds or reimbursement from your employer
- Move over 50 Miles away from your previous home
- Work full-time for at least 39 weeks during the 12 months after moving
What Can Be Deducted?
If you meet the qualifications above, congratulations! Your moving expenses are tax-deductible, and you can start deducting expenses as soon as your move is underway. You can deduct the following expenses:- Gas costs if traveling by car
- Packing, crating, and moving costs
- The cost of shipping pets, cars, or other large items
- Storage costs for 30 days after moving
- The cost of lodging once the furniture is removed from your former home
What Cannot Be Deducted?
The following items are not eligible to be deducted from the cost of a move:- Food purchased while traveling to your new home
- New furniture
- Any unnecessary traveling expenses incurred during a move
- Costs associated with buying or selling homes
- Any trips not directly related to your move - ie, house or apartment hunting trips, visiting your old home after a move is officially complete, etc.
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