Tax Deductible Moving Expenses

One of the benefits of moving to a new location is that some of the expenses involved with making the move may be tax deductible

. Now on the surface that seems like a nice reward for putting up with the frustration and aggravation that go along with moving. However, if you don't know what you're doing, you can end up causing yourself even more grief if you attempt to deduct items from your tax bill that aren't allowable. Here's a list of some moving expenses which are indeed tax deductible and how to keep track of them:

1. Write a list of what you can deduct. There are some really big items which you can subtract from your tax bill. The cost of transferring your personal goods to your new home, taking into account transitory storage costs for relocation whether it's domestic or international is one item. You are also permitted to deduct travel expenses, which include lodging but do not allow for the cost of meals.

2. Save the receipts if you are driving out to your destination. If you intend to arrive at your new home by car, it's permissible for you to deduct expenses for oil and gas. There is even a federal mileage allowance which you can take off as well. Just put everything in a safe place and hold on to it until you are absolutely certain that there will be no questions about any of your deductions.

3. Family member expenses. You are allowed to make deductions for the expenses of members of your household. The only catch is that these must be people who will be sharing your new home with you. It's a good idea to make a log to help you keep track of the money which is spent. While it might seem that keeping a log is unnecessary at first, you will soon find out that it's one of the smartest things you can do. Expenses pile up quickly and they can be confusing.

4. Household goods expenses. Whatever it costs for packing, crating, etc, or whatever method you use to get your possessions ready for shipping. And one thing you might not know, you can deduct transport expenses for your pets or if you need to ship a vehicle. Disconnection and connection fees for utilities can be taken off as well.

5. Storage costs. You are permitted to deduct as much as 30 days of storage expenses from the day you depart from your original home to the day you arrive at

your new home.

These are some of the moving expenses you will incur which are definitely tax deductible. Naturally, it's good to know what these are, but you must also be aware of the expenses you can not deduct. These include any costs pertaining to the buying or selling of a home, any costs rung up while looking for a house, security deposits, and any mortgage penalties or penalties incurred from the breaking of a lease.

Basically, the most important thing you can do when moving is to keep an eye on your expenses. Write down anything you have a question about, as well as the items you know for a fact are tax deductible. Give the IRS a call if you are unsure about something or need a clearer explanation of the rules. It never hurts to be well-informed, so don't hesitate to make that call if you need assistance.

Now these are just some facts to help you with your tax expenses. They do not by any means qualify as professional tax advice and should not be used instead of consulting with a tax attorney if you feel the need to do so. Remember, don't jump to any conclusions. Instead of creating a problem for yourself, it's always best to find out if something is deductible or not right away.

by: ISAAC ATIA

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