Posted on 11/12/21

You Can Write Off Your Moving Expenses

You Can Write Off Your Moving Expenses

How much does it take to ship a car? Moving is not fun, and even more so, it is expensive. If you are moving to a new location, this question will likely be asked.

You can bet that you will move in the next few weeks to a new apartment or house if this is what you are reading. It won't bring you joy, but it will make your wallet happy. There's an easy way to cut down on moving expenses: If you are moving because of work, your expenses can be deducted from your taxes. You read that right. You might be able to deduct some moving expenses if you move for work reasons.

This is the second-best thing about this whole deal. The distance test and the time test you must pass in order to begin writing off moving costs are ridiculously simple compared to the IRS rules that may have been thrown at your head just a few seconds ago. The best part is that you can deduct almost every expense associated with moving.

Both IRS Tests Must Be Passed

The 50 miles "Distance Test is the first. The distance test works as follows: If your new primary job is at least 50 miles away from your old home, your move will pass. Simply determine the distance from your old home to your new job, then subtract that distance from your former job.

You're good to go if the distance is less than 50 miles. If the distance between your old apartment and your new job is 60 mi, and your old job is only ten miles away, then you have passed the distance test. Note: You don't need to pass the distance test if you are in the armed forces or have moved due to a permanent change of station.

The 39-week "Time Test"

Next, The 39-week "Time Test". This works as follows: If you are an employee, you must work full-time for at most 39 weeks in the first 12 months following your move. You must work full-time if you are self-employed for at least 39 weeks in the first 12 months, and for at least 78 during the 24 months immediately after your move. Here's the good news: If you don't pass the time test before the filing of your tax return, the expenses you incurred while moving to that return can still be deducted.

What Moving "Expenses", Are They Tax Deductible?

I didn't exaggerate. You can deduct almost every expense related to moving if you're moving for work. You will need to keep detailed records in order to accurately claim any deductions. Keep receipts for moving boxes and other goods, gas, and toll receipts if your vehicle is a moving fan. Also, keep a copy of the invoice from shipping your car. This checklist will help you make sure that you don't forget about any deductible expenses when moving.

Deductible travel-related moving expenses

  • Professional auto movers will charge you for transporting your car.
  • Along with your travel route, hotel and lodging costs are included.
  • Costs of renting a truck or van as well as gas and tolls on the route.
  • Lodging costs near your home within one day of the move
  • If you fly to your home, the cost of the plane ticket includes baggage costs and transportation costs to the airport.
  • Transport costs to get your car to your new residence
  • Transport costs to bring your pet to your new home by car or air.

Deductible household goods related expenses

  • Cost of cargo insurance and "relocation" insurance for a shipper's vehicle.
  • Costs of packing materials, including packing boxes, wrapping, and tape.
  • If you have hired a company, the cost of professional movers.
  • Moving items from another location to your new home or apartment will cost you more than it would have cost to move them from your home. Let's say, for example, that you need summer convertible transport from a storage facility closer to your home. The shipping costs for the car will be deducted. However, if your vehicle storage facility is farther from your home than your home, you can deduct the shipping costs.
  • Costs of storage and insurance for household goods and personal effects, up to 30 days after they are removed from your home and delivered to your new one.

Deductible utilities related to moving expenses

  • Your move can result in the cost of disconnecting and reconnecting utilities.

If you pass both the tests, you can claim all reasonable expenses incurred in moving your personal and household belongings to a new residence. You can also deduct travel expenses to your new residence, including lodging costs. You can't deduct the cost of meals or expenses incurred while moving to your new home. You can't deduct meals or any expenses incurred by your employer.

How Much Does it Cost to Ship A Car?

Move Car  Auto Transport also offers rates for military vehicle shipping as well as classic vehicle transport. To learn more about shipping your car, don't hesitate to request a free auto transport quote.