How much money will you be spending on moving expenses? If you are investing in the services of a professional moving company, then it might be more affordable if you can find a way to work the costs in as a tax deduction. The general rule is that moving expenses can be tax deductible if you are moving more than 50 miles away because of a change in job.
As with other financial decisions, it is best to talk to your accountant for personalized recommendations. Here are a few things that you might keep in mind during this conversation:
3 Requirements for Tax Deductions
If you want to qualify to use moving costs as a tax deduction, then there are three requirements that need to be met:
- The new home must be near your place of employment. So, your new home needs to be closer to the new job compared to the distance of your old home.
- These moving expenses need to be incurred during the first year of employment. If you move and then start a new job within a year after moving, then those expenses could be considered a tax deduction.
- The new job location needs to be more than 50 miles away compared to your current commute. For example, if you are currently commuting 10 miles and the new job is 30 miles away from your home, then you might not be able to use the expenses for a tax deduction. But, if the new office is located 60 miles away, then it could meet the requirement for these deductions.
Qualifying Expenses for Your Move
Once the above requirements have been met, then you need to keep receipts for most of your moving costs. Qualifying expenses include things such as professional moving services, packing materials, and travel costs.
If you are planning to deduct your moving expenses, then it is a good idea to talk to your moving company and your accountant. These professionals can guide your decisions and ensure that you have the proper documentation for your tax paperwork.
For more information about the best moving services in Temecula, talk to our team here at Ruff and Ready Moving Company. We offer both residential and commercial moving services: (951) 834-3539