Write Off Your Moving Expenses

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Real Estate

Write Off Your Moving Expenses and Some Closing Costs / Interest

Moving expenses are tax deductible if:

l Your new job or job transfer is at least 50 miles farther from your home than the old house was. l you had no previous job, the new one has to be at least 50 miles from your old house. l your move makes your commute shorter than it was prior to the move. l If you are in the armed forces and had a permanent change of station. l If you’re working full-time (you expect to work at least 39 weeks out of the next 12 months). l If you incur expenses within one year from the day you reported to work at your new job.

The required length of time is waived in cases of a new job for members of the armed forces, those transferred by an employer, those who lost a job through no fault of their own, and those returning to the United States from abroad when they retire (or their survivors).

Qualified deductions include

l Packing and transporting household goods l Mileage for use of your own car (or gas and oil expenses) l Tolls and parking fees on the trip l Up to 30 days' storage of household goods

l Disconnecting and connecting utilities l Transportation and lodging for yourself and members of your household while traveling to the new home. No longer allowable: $3,000 more for up to 30 days’ temporary living expenses, house hunting trips and costs of selling or buying a home.

Closing Fees, Interest and Possibly More

If you have moved home in the last calendar year, it would be a good time to contact your agent or closing attorney and ask for a copy of your closing statement. Take this document with you to your accountant when you prepare your taxes so that you can take the maximum advantage of any tax deduction.