Deductible Moving Expenses

Before 1994, a long-distance move was one big glorious tax deduction. Most premoving expenses were deductible, including everything from meals, house hunting trips and temporary living expenses to the cost of getting out of (and back into) a lease.

The picture drastically changed in 1994, and it continues to be a regular victim of whittling as every tax year draws nigh. Before, you could deduct moving expenses if your new or relocated employment was more than 35 miles away; that distance has been increased to 50 miles. Now, deductible moving expenses include only transportation and storage of your household goods, and travel and lodging expenses incurred during your actual move.

Lately, the IRS has stepped in with another interesting change of venue. In prior years when your company transferred you, your entire reimbursement for moving expenses was deductible--within certain guidelines. Under the new regulations, the IRS treats this reimbursement as bonus income, and you are expected to pay taxes on that amount. A sad state of affairs but true!

Relocating? Consult a tax attorney or accountant to learn how you can take full advantage of the remaining benefits and deductions.

If you're planning a move, call me for professional assistance in selling your present home and finding your new home. If your move takes you to another area, I'll be happy to locate a real estate professional who will be able to assist you in purchasing your new home--regardless of your destination in this world of ours.