Whether you buy or sell a home, you will face moving day. It should be a happy occasion, and you can invite Uncle Sam to the party! That’s because if you’re relocating and working in a new place, you could qualify for a generous deduction on your income tax return.
Regardless of whether you own or rent, or whether you itemize your deductions or take the standard tax deduction, you can deduct qualified moving expenses. There are two “litmus tests,” the first of which is that your new job location must be at least 50 miles further away than your old job. Second, you must remain and work full-time for 39 out of the first 52 weeks after your move.
Even if you haven’t yet worked all 39 of those weeks when you file your next return, you can still claim the deduction. If for any reason you do not fulfill that requirement after filing, then you’ll have to amend your next year’s return to delete those moving costs.
What sorts of expenses qualify? Hiring movers (or just the moving truck), storage costs (up to thirty days), even the gasoline if you drive from your old home to your new one. So, before your move, designate a folder for all of your receipts, because the more you can substantiate, the more you can claim! Always check with your CPA or tax professional. Happy Motoring!
This article was originally published on this site on June 12th, 2012. It has been updated reflect the current home market.