When you are moving due to an employment relocation in Del Mar, you may be able to decrease the rates that you will owe by writing off the expenses on your income taxes
The IRS permits you to subtract particular expenses, but that’s only if you have moved for convenience, the deductions will not be able to be taken into consideration.
These are the five tax tips to take according to an article in Realtor.com:
The Time Test
Following your move-in date as well as through the first 12 months, you must be employed for at least 39 weeks. If your business happens to be self-employment, you will need to work 29 weeks in year one and over the next 24 months you must work 78 weeks at full-time.
The weeks don’t have to be consecutively worked or with the same employer.
The 50 Mile Rule
The job you’ve obtained must be further than your old job was from your old home by 50 miles. The example they use with realtor.com is “If your home was 10 miles away from your job, your new job location must be at least 60 miles away from your old home. Anything less than the 50 miles rule and you won’t qualify.
If the moving expenses are being covered by your current employer, you could still have the ability to deduct taxes. If a portion of the expenses, make sure who pays for what, because you could write off the expenses for what you purchased.
Either you or your significant other has to meet the above information to qualify for moving deductions for a joint return.
Deductible Moving expenses
- Packing and the transportation of your belongings whether or not you’re moving yourself or hiring movers
- Insurance cost of move
- Connected or disconnected utilities costs
- Lodging: If you have to move and you can’t stay due to the furniture being gone, you could write off a hotel for one night.
- Storing your belongings in a storage unit for at least 30 days
- Cost of trips for each member of the house
- Gas: so if you drive 500 miles in your car you could write off as much as $120 in mileage costs.